Server Farms Flourish In Iowa: Microsoft Plows $700M More Into Des Moines
1sockchuck writes "A big chunk of the Azure cloud will be living on the plains of Iowa. Microsoft will invest another $700 million to expand its Iowa data center campus near Des Moines, marking the third major server farm for the state this year. Facebook recently announced a new data center in Altoona. The same day, Google said it would put another $400 million into its facility in Council Bluffs. Why Iowa? Aggressive tax incentives and a central location to bridge the distance between these companies' east and west coast server footprints."
1. It smells like pig crap.
they need to do this for the NSA . More data storage capabilities to spy on everyone freely
I love the way that the US taxpayer subsidises these huge companies, wish the had the same here in Wales UK.
Aggressive tax incentives and a central location to bridge the distance between these companies' east and west coast server footprints.
The first part is really all that mattered to them.
Come on, "bridging the distance" between the west and east coasts? We all know how fast light travels...
#DeleteChrome
I always wonder why M$ refers to their business centers as a "Campus" when it's nothing more than a factory and/or business center and/or sweat shop for programmers.
The image that comes to mind, of an M$ programming group, or "campus", or whatever you may wish to call them, is the scene from Meet the Robinsons, of the future world of Doris the Bowler Hat.
"Suppose you were an idiot...and suppose you were a member of Congress...but I repeat myself." Mark Twain
quality of life indicators
If you compare Des Moines to the the average of the 100 best cities this tool has data for, Des Moines has a lot of crime, terrible education, and not a lot to do. All it seems to have going for it is short commute times and a low cost of living. Even the financial incentives aren't that great in my opinion. The average home price may be $100,000, but the median familyincome is only $55,000. Considering fuel, groceries, and utilities (probably expensive because of hot summers and cold winters), probably aren't any cheaper than other cities, I doubt that $55,000 goes very far. I agree with the other posters that they are doing this because it is cheap.
IBM Plans New Center in Iowa (2009): "The terms of the deal underscore how coveted new jobs are among the states at a time of rising unemployment. Iowa is paying up generously to attract the plant. Mike Blouin, president of Greater Dubuque Development Corp., said it is providing "a $55 million package." That includes an $11.7 million loan from the state that will be forgiven if IBM maintains the jobs for two years.Local community colleges will pay IBM $10 million for job training expenses for its employees. Under an Iowa program that he called unique, Mr. Blouin said the colleges sell bonds to finance the training expenses, and pay off the debt from the state income taxes generated by the trained IBM employees. In addition, the government will guarantee a $25 million loan to a local nonprofit group that will renovate the building, and lease it to IBM at what Mr. Blouin said was a "very low" rate. IBM will also receive tax credits and a 20-year tax abatement. In return, Mr. Blouin said IBM will create a $58 million a year payroll plus benefits and add to local spending."
They get a $20 million tax refund in exchange for "creating" 29 jobs in the state.
Perhaps those 29 new employees (and the state) would be better off if the state gave each of them $689,000 and they could invest in their own new businesses instead?
If you're a zombie and you know it, bite your friend!
There's also the issue of the backbone that's installed. There was a very serious push by McLeod a while ago to get heaps of fiber in the ground, but much of it lay dark once it was installed. McLeod went bankrupt, but having all that fiber in the ground also has to be a consideration.
I moved from California back to Iowa, where I grew up, to get away from becoming a colony of India. Now where do I move?
Seastead this.
I can tell you that there's a few reasons. Taxes are obviously the big one, but Iowa is also doing huge expansion of renewable energy sources, which companies love for datacenters. Des Moines is also located where two of the main US interstates (I-35 north/south, and I-80 east/west) meet, so it's a bit of a trucking hub so logistically it's probably cheaper to get stuff here. Also, Des Moines already has several large corporations that have major headquarters here (Wells Fargo, Principle Insurance, Nationwide Insurance, and more), so there's a decent workforce that's already trained to pull from. There are plenty of mainframe guys in town because those companies are headquartered here. I know we all joke about COBOL being a dead language, but I got a job offer from the head of the tech division for a major insurance company while going to a local community college because he was the COBOL instructor and was trying to groom future talent.
3/4 of it is from fossil fuels. http://www.state.ia.us/government/com/util/energy/electric_profile.html
Shoes for Industry. Shoes for the Dead.
The only metric being optimised is profit for $BIGCO's owners; the wellbeing and prosperity of Iowans is irrelevant. Ask Indian farmers how Coca-Cola bottling plants (and bottled water plants) are helping THEM.
You're aware that data centres like this employ about 50 people, right? This is not a business that sustains the local economy.
Slashdot's libertarian reptile brain really should try harder.
you had me at #!
n/t
you had me at #!
They may have offered very tempting tax incentives to lure in others in building datacenters in Iowa, but I gotta tell ya, Iowa can get very hot in Summer, which means megawatt/gigawatt used for cooling alone
Anyone from Iowa ? Care to share with us how much electricity costs in Iowa ?
headline made me chuckle. when i saw the word farm i thought of cows and rows of corn. no offense to anyone in the hawkeye state. i'm sure Iowa has more than agriculture farms in your fine state. didn't realize that Iowa has any hightech firms or datacenters in their state. learned something new. guess the datacenters will be in a non-discript building in a suburb of a big city just minutes away from an agriculture field. actually, i think the area around Des Monies is kinda built up.
Azure has made some incredible strides in recently months. They announce new features almost every week. I can't wait to see more at Build 2013. My company has slowly been moving more and more resources into Azure and out of our own datacenters.
Iowa has huge amounts of wind energy to power those servers.
Quantum Communications is the technology that games changes the current physics everyone! So Iowa wii retain the millisecond advantage despite your thoughts.
Iowa has clear footprints from a dominate market share situation.
Of the major cloud players or economic participants:
1. Google
2. Facebook
3. IBM Dubuque and yet to be announced
4. Microsoft
5. Terremark TDS
Absent but probably wondering or searching for Iowa locations:
1. Rackspace
2. Apple
3. Amazon
4. Hewlett Packard and its EDS division with Des Moines hub now
Iowa counts on a per capita basis number 1 in wind power.
Per capita basis data center builds also close or at #1 also, the digital computer or ABC was invented in Iowa so perhaps this is a punctuation mark from that historical fact.
Downside, well site selection will shrink as each new major entrant comes into play.
http://www.aisnota.com/slashdot/ Welcome to Logic and the Future
In towns in central Iowa there's a standard saying about Des Moines: "They ruined seven or eight good farms when they built Des Moines."
facebook had already built $450 Mil Datacenter in Western Iowa
I think they are building DataCenters in Iowa because Iowa is the 2nd leading Wind Energy state in the Country behind California and the owners of the DataCenters can get tax credits for using the green energy.
Facebook is only in Altoona, Iowa so far which is considered central.
As far as wind energy, per capita wind production puts Iowa #1 nationally and only second to Texas in raw production from AWEA figures.
Really it is hard to understand the anti-Iowa rhetoric here. Jealous of Iowa that much? Sure Iowa is the state closer to Field of Dreams whereas many states are more nightmare.
If you do not like Iowa, shut up and stay away. People here are generally nicer and women better looking. California and New York model agencius troll Iowa and Kansas because more pee capita are here too to resuppky their dwindling supplies native to there.