Zach Lahn, a Republican running for governor, is raising concerns about the construction of data centers and he’s suggesting new tax zones for the facilities.
“If you want to build a data center in Iowa, I’m going to charge you five times the property tax and it’s going to go lower the property taxes of people in the neighborhoods that you’re around,” Lahn said.
Lahn hosted a campaign event last night at a West Des Moines restaurant. Lahn described the current construction of two data centers near Cedar Rapids as a troubling sight. “1400 acres of farmland has now had the topsoil ripped off. It looks like a military installation,” Lahn said. “…I have never in my life seen something built this fast.”
The data centers for Google and QTS being built in an industrial park in southwest Cedar Rapids are the largest construction projects in the city’s history. QTS, which operates data centers in the U.S. and Europe, plans to spend $750 million on the seven building campus. The City of Cedar Rapids has approved property tax rebates to QTS worth more than half a billion over 20 years. Lahn said that’s unacceptable since the company has only pledged to create 30 full-time jobs once the facilities open.
“Here’s what Donald Trump would say about this: ‘We’re suckers.’ And as governor, we are not going to be suckers anymore. We’re done. We’re putting Iowa first,” Lahn said, to applause. “There’s an article in the paper in Cedar Rapids that said: ‘Well, they’re knocking on our doors. Do we want them to go somewhere else?’ Yes. Go.”
Industry analysts say Iowa has become an attractive location for data centers due to low construction and land costs and a stable power grid that provides affordable electric rates.