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Iowa's New Top Crop Is Server Farms
1sockchuck writes "Microsoft just confirmed that it will build a $500M data center in Iowa, following the lead of Google, which is nearing completion of a $600M facility in the state. Boosted by generous tax incentives and affordable power, Iowa is prevailing in a fierce competition with other states for these huge data center projects for tech titans. Iowa officials say they intend to leverage that track record to attract even more projects in a bid to transform the state into a mecca for server farms." The Economist covers this trend more broadly, focusing on Washington state and Iceland angling to become server-farm destinations.
Discuss.
There is more than just that. Washington state has about the lowest electricity rates in the world from all the hydro-electric generation.
Now I had heard that stable geology was an important factor for large server farms. That's a minus point for Iceland, how does Iowa fare on that front?
No one is giving them money, they're being allowed to keep more of their revenues. The whole point of welfare is that you give someone money that they would have never had in the first place. Based on your so-called logic, any tax break for the middle class is now a form of welfare.
This is good for the IT industry in the states. This'll create more jobs and shows that it's still practical to have IT services in the US. Maybe the outsourcing craze is slowing down and the future of US computech isn't as bleak as it seems.
Iowa's top crop, and the top cash crop for the US, is marijuana. It beats out these server farms by far, and it does it without taxpayer subsidies.
Part of our economic problem right now is we're expending huge amounts of capital to drive a large segment of the economy off of the books. When the underground economy is larger than the aboveboard one, things get pretty chaotic fast.
Help stamp out iliturcy.
I RTFA, but I *still* don't know what Microsoft's and Google's server farms used for seeds! ;)
I'm glad they did something useful with those server seeds. I heard something somewhere about Pharmers opening up packets...
they must have done an INSERT INTO ground.
Well, back to rejecting software patent applications.
I wonder how far away from the Mississippi river, these data centers are in Iowa. I would hate to see all these data centers flooded some day.
Regards,
Ryan Pritchard
Fun Extends All Basic Life Expectancies
Well, google's data center is in Council Bluffs (or counciltucky as we Omahogs call it) so Iowa would have some troubles on their hands if the Mississippi flooded it. They may have some more trouble with the Missouri river. Then again, they're on the bluffs, so unless they specifically built it in the floodplain, they're probably fine.
Bloody hell, they hear about some flooding in the news and suddenly the entire state is at risk...
Google's is on the other side of the state, near Council Bluffs. Microsoft's is in the central part of the state in West Des Moines. Neither is close to the Mississippi, however, either could be close enough to a river to be affected when we get the next 1000 year flood.
There are many, many factors in selecting locations for data centers. In the end, you need to compromise on some things and tax incentives certainly influence the decision.
The online service oriented data centers tend to be "lights out" in that they'll run for an extended period of time without humans coming in and screwing things up. While it's doubtful that any of these data centers are in a 100 year flood plane, the "lights out" functionality means they need not worry as much about their employees being impacted by a flood. Just keep the power and data circuits flowing and the corporate overlords still get paid. Automation of the mechanical and electrical systems is progessing (at a turtle's pace compared to IT, but it's still moving) so much of the facility side can be operated remotely as well.
Further, many of these types of setups are employing sealed shipping containers (e.g. Sun's MD-20, HP's POD, Rackable System's whatever they call it, etc.) inside the buildings. The old raised floor and controlled rooms are being replaced by concrete slabs, containers, and shipping cranes. They don't even open the containers unless more than 10 or 20% of the systems inside have failed. Again, a highly controlled and protected environment with little human interference.
All that being said, flood plane is typically in the top considerations. Others include:
-power cost (and cost stability)
-availability of 69 or 138 kV feeds
-distance from flight paths
-proximity to transportation
-distance for rail lines that carry chemicals or other bad things
-access to staff and service for IT kit and mechanical/electrical systems
-latency requirements (not as much of a factor for most web services)
-access to and diversity of telecom (washington area mid west on this one)
-land and construction costs (construction much greater than land)
-zoning restrictions and flexibility for land and telecom delivery
-average hourly temperature and humidity (both impact the ability to gain "free" cooling and you can find studies showing that you get more free cooling in AZ than you do in IL)
-proximity to executive's homes/summer homes/favoriate vacation areas
-etc., etc.
West Des Moines is on some significant bluffs. It is a place people flee to when there is flooding.
I found the exact description of the tax exemptions Microsoft is getting. They pay no taxes on:
Computers, cooling systems, electric power wiring, backup power systems (including fuel to run them), electricity (!!!!!), cabling and racks, and batteries. And there's a weasely clause "..including but not limited to.." that seems to give them a blanket waiver on just about anything they can bury in the budget.
In return, MSFT agrees to make $200mil in investments in the site within 6 years.
This is definitely corporate welfare. I want an exemption on MY electricity for MY computers!
Does this mean the 2012 presidential candidates will push server based ethanol?
based upon the locations already selected (and in use for the Google DC)if they are underwater, so is most of the great plains.
Both are statistically damn near impossible to flood.
there are many "High" areas in Iowa as it is bordered on both sides by two rather large river systems with rather large bluffs on both sides.
the center of the state also has some serious river systems which also have created large bluffs (though not as tall).
Actually both are in the 1000 year flood plain.
but so is all of Iowa.
and most of the great plains as well.
This server farm is generating all of FIFTY to SEVENTY-FIVE jobs with an avg salary of 70k/yr. Iowa is a low cost-of-living state with good power and a high attrition rate, the local govt will do what they can to keep people here. The state will probably count how many construction workers it takes to build the place and call those "jobs generated", when the real number, considering the scope of the project, is insignificant.
It may be a good move in that with both Google and Microsoft here, the IT people will have a nice place to intern at or tour, and if we're lucky, there may be some residual bandwidth upgrades to lean on.
Unless I am mistaken Iowa gets more tornado then flood. Can anyone shed more light to this?
Even veals have more autonomy!
Significant bluffs? I think you're thinking of West Burlington. West Des Moines is over in the middle of the state, away from the Mississippi and only higher than the surrounding flat by not being in the Des Moines river basin for the most part.