Apple to build Iowa data center, get $207.8 million in incentives

(Reuters) - Apple Inc will build a $1.375 billion data center in Waukee near Des Moines, Apple and Iowa officials said on Thursday, with $207.8 million in incentives approved by the Iowa Economic Development Authority.

Apple will purchase 2,000 acres (8.09 square km) of land in Waukee to build two data centers. The company will receive a $19.65 million investment tax credit for creating 50 jobs. There will be other jobs created during construction, but no numbers have been given yet.

Chief Executive Officer Tim Cook is slated to speak in Des Moines later Thursday.

The bulk of the subsidy is a planned $188.2 million property tax abatement of 71 percent over 20 years provided by the city of Waukee, according to economic development officials.

The Iowa data center will join Apple facilities in California, Nevada, Oregon and North Carolina, which also host services such as iCloud and Apple Music. Facebook, Alphabet's Google and Microsoft also maintain data centers in Iowa.

Apple will spend $110 million to acquire and prepare the land for its data centers in Iowa, according to economic development officials. The bulk of the costs, $620 million, will go toward construction. Apple will spend $600 million on computer equipment, with the remaining $45 million going toward other equipment.