Microsoft Expands Data Center Presence in West Des Moines
Microsoft Corp. is continuing to expand its data center presence in West Des Moines, Iowa, further boosting the local economy. The West Des Moines City Council has granted approval for modifications to the site plan for Microsoft’s Ginger East data center, allowing for the construction of two additional buildings at the site. Each building will measure 245,000 square feet, with space available for another building in the future.
In addition to the Ginger East data center, Microsoft already operates four other data centers in West Des Moines, including Mountain, Alluvion, Osmium, and Ginger West. Furthermore, the tech giant has plans to establish a sixth data center location in the area, named Ruthenium, which will be located in Madison County. Microsoft has also recently acquired land in Van Meter for another future data center.
The impact of Microsoft’s data center investments in West Des Moines has been significant. The assessed valuation of the city has increased by over $2 billion, making it the third-largest taxable valuation in Iowa, despite being the seventh-largest in terms of population. The growth has resulted in substantial tax revenue for schools, counties, and the city itself.
Moreover, the data centers have created almost 400 jobs in the operation and service sectors, in addition to providing employment opportunities during the construction phase. The development of new infrastructure to support the data centers has also opened up large areas of land for future development.
Mayor Russ Trimble of West Des Moines highlighted Microsoft’s willingness to partner with the city in addressing water system challenges arising from the data centers. Microsoft has been one of the largest water users in the city since at least 2019, consuming more than 41 million gallons of water in 2023 alone. This accounts for approximately 1.5% of all water pumped in the district that year and makes Microsoft the third-highest water user. The water is primarily used for cooling the computer equipment within the data centers.
Analyst comment
Positive news: Microsoft Corp. is expanding its data center presence in West Des Moines, boosting the local economy. Approval for modifications to the site plan has been granted, allowing for the construction of two additional buildings. This expansion has led to significant increases in assessed valuation, tax revenue, and job creation. The development of new infrastructure also opens up opportunities for future development. As an analyst, the market is expected to benefit from increased economic activity and job creation in West Des Moines due to Microsoft’s expansion.
