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Apple To Build $1.3 Billion Iowa Data Center, Get $208 Million In Incentives (cnbc.com)
CEO Tim Cook said on Thursday that Apple will invest at least $1.3 billion in the first phase of an Iowa data center project. The data center will be built near Waukee, Iowa, creating 50 permanent jobs with more than 550 jobs supported by construction, Apple said in a statement. CNBC reports: "Apple is going to continue to invest in that future, for Waukee, for Iowa and for America," Cook said. It will get $208 million in state and local tax benefits, according to The Associated Press. "Apple has been searching for the perfect location and I am so proud to say that they found it right here in Iowa," Iowa Gov. Kim Reynolds said, noting the state's educated workforce, stable climate and low-cost, renewable energy. "Iowa workers give companies a leg up at the start.... it is just a blessing to be in the heartland of America." The 400,000-square-foot data center will "strengthen the relationships" in Iowa, where 30 Apple suppliers, including 3M and Qorvo, already operate, Cook said.
1. They are being paid 4M per job
No, this assumes that some other company would have built on that land and paid the full tax rate. This is vacant land which is taxed at a far lower level. It seems more likely that Iowa is simply applying the tax rate of what vacant land would cost instead of developed commercial property.
2. Apple can pick up and leave after 10 years
True, they can have another state build a new data center for them but why would they? The labor cost savings would be insignificant and if you have a perfectly good data center what is the point of mothballing it?
I don't like the fact that rich companies like Apple get tax breaks but everybody wants to have high tech jobs. Tech companies are not going to move to sparsely populated states like Iowa without major incentives. Even if they leave later on they will leave behind a built up infrastructure that could be used to lure other companies to the region.