Cedar Rapids plans $750M data center campus creating 500 construction jobs

The Cedar Rapids City Council convened on January 15, 2025, to discuss significant developments regarding a major data center project anticipated to bring substantial economic benefits to the community. The meeting highlighted the project's potential for job creation, community funding, and its overall impact on the local economy.

The council began by addressing the employment opportunities associated with the data center project, which is expected to unfold in multiple phases. While the initial phase will create a relatively small number of jobs, it is projected that the overall employment will grow significantly over time. Council members noted that the construction phase alone will generate over 500 jobs over a ten-year period, emphasizing the importance of these positions for local workers and the community at large.

A key aspect of the project is the establishment of a community enrichment fund, with the company SQTS committing to contribute $300,000 per phase. This fund is expected to accumulate up to $18 million over 20 years, providing financial support for city and nonprofit projects. Council members expressed optimism about the fund's potential to enhance community resources, especially in light of recent legislative constraints on city funding.

The project represents a substantial investment, with estimates suggesting a total capital expenditure of $750 million. This figure positions the development as one of the largest economic initiatives in Cedar Rapids' history, with significant implications for the local tax base. The council highlighted the interest from local contractors and businesses eager to participate in the project, indicating a positive ripple effect on the regional economy.

Utility considerations were also a focal point of the discussion. Council members received assurances from Alliant Energy's CEO that existing utility rates for current customers would remain stable despite the project's demands. This commitment is crucial for maintaining affordability for residents while accommodating the new data center's energy needs.

The meeting concluded with a presentation detailing the project's timeline, which includes the commencement of construction within three years and the completion of subsequent phases within six years of each initial phase. The council expressed strong support for the project, viewing it as a catalyst for economic growth and community development in Cedar Rapids.

Overall, the council's discussions underscored the transformative potential of the data center project, with expectations of job creation, community investment, and enhanced economic vitality for Cedar Rapids and its residents.