The city of Cedar Rapids and Alliant Energy have officially confirmed QTS (Quality Technology Services) will be building a data center campus in southwest Cedar Rapids, marking the largest economic development investment in the city’s history.
The Cedar Rapids City Council approved a development agreement with QTS Cedar Rapids LLC at their Jan. 28 meeting.
The data center campus, with a minimum investment of $750 million, will be located on 612 acres of the Big Cedar Industrial Center, established by Alliant Energy in 2016. The 1,391-acre center is bordered by Edgewood Road SW, 76th Avenue SW, Fairfax Road, and the Union Pacific Railroad.
QTS is described in a release as a “digital infrastructure leader that designs, builds, and operates world-class data centers at scale across the globe.” The company has dozens of data center locations in the United States and Europe, but this will be the company’s first venture in Iowa.
Under the development agreement, QTS will contribute up to $18 million over 20 years to the City of Cedar Rapids-owned “Community Betterment Fund” following the first phase of construction.
“QTS’s arrival underscores Cedar Rapids’ momentum as a center for growth and opportunity,” Cedar Rapids Mayor Tiffany O’Donnell said. “With a multi-million-dollar commitment to our community betterment fund, this investment brings high-quality jobs, drives economic progress, and strengthens our local initiatives and nonprofits.”
Leaders say investments made by Alliant Energy accelerated opportunities for Cedar Rapids’ energy infrastructure and economic development.
Leaders have said construction of the data center campus will bring hundreds of construction and trade jobs, and a minimum of 30 high-tech full-time jobs (15 in each of the project’s first two phases) once operational. The project also provides potential for additional phases in the future.
“We are excited to welcome QTS to Cedar Rapids and proud to support their investment in the region,” said Mayuri Farlinger, president of Alliant Energy’s Iowa energy company and vice president of Energy Delivery. “As a trusted energy partner, we are committed to providing cost-effective power to fuel their operations, while also fostering economic growth for the communities we serve. This stands as a testament to the region as a hub for innovation and investment. We look forward to working together to ensure their long-term success.”
The facility will feature a water-free cooling system, significantly reducing water consumption compared to traditional data center cooling methods.
“Our focus on meaningful partnerships, innovation, and leveraging local talent and infrastructure continues to position Cedar Rapids as a destination for global leaders like QTS,” Cedar Rapids city manager Jeff Pomeranz said. “This data center campus strengthens our position as a center for emerging technology, demonstrating the value of our ongoing efforts to build out diverse industry clusters and ensure Cedar Rapids remains innovative, sustainable, and future ready.”
Construction of the first phase will begin within three years of the effective date of the development agreement, with the second phase beginning within three years of the completion of the first phase. Both are expected to be completed within six years.
Any additional phases, if pursued, will be completed within 25 years of the development agreement.
“Projects like this happen because of key partnerships, in this case, among the state, the city of Cedar Rapids, QTS, and Alliant Energy,” Iowa Gov. Kim Reynolds. “Iowa offers a growth-friendly environment and a population known for its strong work ethic. We’re happy to welcome a partner like QTS, who is committed not only to new innovation and technology but also to investing in this community.”
The project was first tied with Google in March, when the global technology firm was identified as the company proposing the monumental data center project in southwest Cedar Rapids – a project that, with a minimum investment of $576 million, would become the largest economic development project in the city’s history, officials have said.
The Big Cedar Industrial Center is also set to be the home of a new $576 million Google data center.
The Cedar Rapids council approved a development agreement for the project in February 2024, and the Iowa Economic Development Authority approved a financial incentive package March 22.
Under the development agreement with the city of Cedar Rapids, Heaviside LLC is proposing to develop “one or more” data centers in the Big Cedar Industrial Center – a project that would subsequently be owned and operated by Google.
