Microsoft Expanding in WDM

[cytech]

SUPERSIZE my CLOUD - Microsoft plans $677m data centre embiggening ? The Register

Looks like the mystery data center builder in WDM is Microsoft expanded the project they already have there.

 

[bos]

Tech companies love to stash their **** here but dont really employ anyone. I hope at some point more headquarters and call centers come here too so we get some jobs.

 

[longtimeclone]

Tech companies love to stash their **** here but dont really employ anyone. I hope at some point more headquarters and call centers come here too so we get some jobs.

At least the contractors will get some projects to work on

 

[bos]

At least the contractors will get some projects to work on

As long as they are local contractors. =)

 

[ISUagger]

This is still good for the state, even if it doesn't employ very many people. I wonder what made them choose Iowa. Maybe there is a military advantage to putting stuff like this as far inland as possible. The only natural disaster you really have to worry about here is tornadoes.

 

[1100011CS]

This is still good for the state, even if it doesn't employ very many people. I wonder what made them choose Iowa. Maybe there is a military advantage to putting stuff like this as far inland as possible. The only natural disaster you really have to worry about here is tornadoes.

And floods

 

[bos]

This is still good for the state, even if it doesn't employ very many people. I wonder what made them choose Iowa. Maybe there is a military advantage to putting stuff like this as far inland as possible. The only natural disaster you really have to worry about here is tornadoes.

Cheap land and tax breaks on electricity. Its a no brainer. I can see more and more of the coasts investing in the midwest from now on.

 

[longtimeclone]

As long as they are local contractors. =)

I wouldn't be surprised if some of the large contracts go out of state, but some of the jobs that use steel workers or electricians would probably be subcontracted to local guys.

I agree that it would be nice to for these companies to set up more here and offer more permanent jobs, but I am sure that it is a tough sell to get people to move from the west coast to Iowa or the midwest in general.

 

[ISUagger]

And floods

Well at least you can remove the threat of that by not building in a flood plain.

And meteors

 

[isufbcurt]

This is still good for the state, even if it doesn't employ very many people.

Could you expand on this? I just don't follow it, everytime they announce a data center getting all these tax breaks to employee 30 people to me it doesn't seem worth it. Yeah the construction companies hire people to build it but they are either people currently working for the company or temps for that project.

 

[bos]

I wouldn't be surprised if some of the large contracts go out of state, but some of the jobs that use steel workers or electricians would probably be subcontracted to local guys.

I agree that it would be nice to for these companies to set up more here and offer more permanent jobs, but I am sure that it is a tough sell to get people to move from the west coast to Iowa or the midwest in general.

What? You would be a short jaunt to the worlds largest cow once a year. Thats amazing.

 

[cytech]

Could you expand on this? I just don't follow it, everytime they announce a data center getting all these tax breaks to employee 30 people to me it doesn't seem worth it. Yeah the construction companies hire people to build it but they are either people currently working for the company or temps for that project.

Tax breaks have become the standard for any new development creating more than 1 job.

 

[Cyclones_R_GR8]

I wish I could find it but I read an article a few years ago about the number of data centers looking to relocate to the midwest.
Many of the data centers that are out there are old and were built in converted office space and the cost to upgrade them to be compliant with modern standards is prohibitive. With IP you no longer need your workforce confined to the same building as your hardware so rebuilding in the midwestern locations makes sense.

 

[longtimeclone]

What? You would be a short jaunt to the worlds largest cow once a year. Thats amazing.

I glance at the large animals, but I stay for the funnel cake and the animal learning center. I don't think it ever gets old watching a cow, pig, or goat give birth to an animal. I also like watching the little ducklings too.

 

[longtimeclone]

Tax breaks have become the standard for any new development creating more than 1 job.

I think that is how competitive it has become between local governments though. I think many of these are banking that it will lead to more expansion in the future.

 

[JWIL4CY]

$20 million in tax credits for 29 jobs. Someone please explain this to me.

 

[Mtowncyclone13]

Communities in Iowa need to come together and agree not to offer tax breaks or development subsidies. It will not only keep the playing field level but it will save taxpayers money in the long run. The Twin Cities has a great example of how communities understand they are all "in it together" and shouldn't just compete with one another.

 

[Mtowncyclone13]

$20 million in tax credits for 29 jobs. Someone please explain this to me.

You see part of the governors plan was to create jobs. He created 29 jobs and it only cost Iowa taxpayers $690,000 per job!

 

[boone7247]

$20 million in tax credits for 29 jobs. Someone please explain this to me.

Or you can look at is as $20 million in tax credits to build a $700 million dollar project. Which the majority of that labor and material with touch the iowa workforce. It is roughly a 3% savings for Microsoft. While it only creates 29 permanent jobs it does create several jobs in building it. Even if they don't' use an Iowa construction company they have to pay employment and sales taxes. Not saying Iowa will recoup all $20 million immediately, but it probably works out.

Plus developing a relationship with Microsoft shouldn't be looked at as doing a bad thing. Granted i think most large corps are going to go where it is cheapest to build, but maybe this helps Iowa land something else in the future.

 

[isufbcurt]

Or you can look at is as $20 million in tax credits to build a $700 million dollar project. Which the majority of that labor and material with touch the iowa workforce. It is roughly a 3% savings for Microsoft. While it only creates 29 permanent jobs it does create several jobs in building it. Even if they don't' use an Iowa construction company they have to pay employment and sales taxes. Not saying Iowa will recoup all $20 million immediately, but it probably works out.

Plus developing a relationship with Microsoft shouldn't be looked at as doing a bad thing. Granted i think most large corps are going to go where it is cheapest to build, but maybe this helps Iowa land something else in the future.

I would argue the bolded. Most likely the construction company is using current employees and if they need more they will hire temps to fill what they need.