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Apple Gets $208 Million in Tax Breaks to Build Iowa Data Center
26 August 2017, 01:29 | Gina Pena
The Apple data center in Maiden North Carolina
Apple is a boon for Waukee, a farm town about 18 miles west of Des Moines, which is working to keep up with its rising population.
Apple claimed to have reached the goal of operations with 100 per cent renewable energy in the United States and 23 other countries.
The move will create at least 50 jobs that pay at least $29.12 per hour.
"We're honored Apple is choosing Iowa for the site of its most technologically advanced data center to date", said Iowa Governor Kim Reynolds in a statement.
Construction on the data center is expected to start early next year and Apple plans to bring it online in 2020.
In addition to the promised 50 jobs, Apple has agreed to buy 2,000 acres of land for the $1.4 billion project.
Apple Inc., the technology company with iPhone smartphone as its flagship product, has announced its plan to build a new data centre in Iowa, a midwestern U.S. state.
Cooke added that Apple admires what had been accomplished and wants to be part of it. Every day, they make it possible for Apple users to send tens of billions of messages, to save more than a billion photos and to place 10 billion FaceTime video calls.
Tim Cook also said Apple will contribute up to $100 million towards a "public improvement fund" for Waukee.
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The Apple data center in Maiden, North Carolina. A combination of state and local incentives for Apple totaling more than $207 million sealed the deal.
"You just don't throw money out without getting a return for it", said John Campbell, of Steelworkers Union Local 310.
It results in a net fiscal loss as it's a giveaway to a business that has extraordinary wealth and it does not make any sense from the point of view of an economist.
This is likely due to favorable tax policies as well as the State's willingness to free up crop land in favor of semi-industrial developments. "That's a huge impact". It amounts to a 71-percent abatement on property taxes over 20 years.
Waukee Mayor Bill Peard is thankful of the new project since it "will bring with it high-quality jobs and important infrastructure developments for the city".
"I feel like the red-headed stepchild over here", Linda Porth said. The state is pitching in an additional $19.65 million in tax credits. "And as the App Store grows, we look forward to growing in Iowa", Cook said. "This puts Iowa on the world stage".
However, other than saying it will create over 550 construction and operations jobs in the Des Moines area, Apple did not specify how numerous job positions will be long-term ones.
Facebook Inc, Alphabet Inc's Google and Microsoft Corp also maintain data centres in Iowa. Like Apple, they were drawn to the state by its generous tax breaks, wind-generated electricity and. "The tax revenue that will come in will help us continue to build that".
The bulk of the costs, US$620 million, will go toward construction.
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