Future-focused investments advance regional high-tech industry strengths.
Data center exploration in Iowa’s capital city region dates back to the early 2000s, as developers were on the hunt for locations within a safe zone with reliable, low-cost electricity, cool climates and a data-center friendly tax environment. They found just that.
Two decades later, these advantages continue to vivify a thriving hyperscale data center market, spearheaded by Apple, Meta and, most notably, Microsoft. The presence of these corporate giants has been pivotal in preparing the region’s workforce for high-tech opportunities, becoming prime community partners in the development of industry-focused curriculum, project-based learning programs, early skills training and construction skills training.
“The types of jobs at data centers are electrical, mechanical, networking, computer and systems engineers and technicians and other hardware/equipment type positions,” says Greater Des Moines Partnership Senior Vice President of Economic Development Stacie LoVan. “Data centers have raised awareness for these positions, which are also found in other industries in our area. Having these companies here also helps put us on the map as a great place to work at a tech company.”
At the same time, it’s placed central Iowa on the radar of industry leaders looking to construct the next generation of data centers. In March 2025, sustainable infrastructure company Endeavour’s subsidiary Edged Data Centers announced that it would be the region’s latest arrival.
The new one-story Edged data center will feature 24/7 access, two meet-me rooms and two loading dock bays.
Rendering courtesy of Edged Data Centers
About 20 minutes north of Des Moines, Edged has plans to deliver a 105,000-sq.-ft. data center on 17.5 acres located in the city of Ankeny. The $187 million, 13.2-megawatt facility will be designed for high-density artificial intelligence (AI) workloads, built with sustainability in mind.
“The Des Moines region’s strategic location near the center of the U.S. with high-sped connections from coast to coast was a big draw for us,” an Edged Data Centers spokesperson tells Site Selection. “In addition, the region boasts abundant, reliable and affordable power, a highly skilled workforce and exceptional fiber connectivity — all critically important factors for us when we consider where to build.”
The large-scale data center will feature a ThermalWorks waterless cooling system and ultra-efficient energy systems that will enable Edged Des Moines to conserve local water resources, equating to over 52 million gallons of water annually, while minimizing the facility’s energy consumption. This cooling system has become a staple in the company’s data centers as it is capable of handling intense generative AI and advanced computing demands, up to 70 kilowatts per rack with air cooling and 200 kilowatts per rack with plug-and-play liquid cooling integration.
Construction is slated to begin in the latter half of 2025 with completion expected in 2027. The Ankeny project investment follows a number of recent data center location openings for Edged in locations such as Atlanta, Georgia; Kansas City, Missouri; Irving, Texas; and Aurora, Illinois.
“We are always looking for new locations for our rapidly expanding portfolio of ultra-efficient, AI-ready data centers,” says Edged. “The city of Ankeny specifically stood out for its commitment to sustainable infrastructure and business-friendly approach. Our hope is to continue building in Iowa for all the reasons we mentioned before — power availability, fiber connectivity, skilled workforce. We are part of the community and here to stay.”
LoVan notes two major benefits of the project’s arrival, the first being that it will expand the tax base in Ankeny. In addition, the data center’s focus on AI builds upon the region’s legacy as the birthplace of ChatGPT, housing Microsoft’s Azure supercomputer which was built for OpenAI.
“We are also excited about their focus on sustainability and using technology to reduce water and electric consumption,” says LoVan.
Greater Des Moines supports a workforce of nearly 37,300 employees within its high-tech ecosystem. Market intelligence and advisory firm Baxtel ranked the region as the ninth largest U.S. data center market, housing over 50 data centers and counting. With Meta’s $2.5 billion, 5-million-sq.-ft.-plus data center campus expansion in Altoona set to be complete in 2025, while Apple’s $1.4 billion, 400,000-sq.-ft. data center in Waukee is underway, it’s clear central Iowa is primed for critical tech development.
“Iowa and Greater Des Moines are well-recognized as data center locations. Like in so many areas, our region fights above its weight with much larger metros on these projects,” says LoVan. “You may hear more about [other markets] due to their size, but our region is well regarded by site selectors when they are working on data center projects, particularly for hyperscale data centers. We will continue to see data center growth in the region.”
Data Spreads
About 113 miles northeast of Ankeny, the City of Cedar Rapids, Alliant Energy and digital infrastructure company QTS introduced a new data center development just weeks before Edged Data Centers arrival.
QTS has been confirmed as the developer behind a $750 million data center campus in Cedar Rapids.
Rendering courtesy of City of Cedar Rapids
News of the project first broke in September 2024 as the Cedar Rapid City Council approved a number of tax breaks toward the development, such as a 20-year property tax rebate. At the time, it was unknown who the company developing the site would be. Ultimately securing a 612-acre site at Alliant Energy’s 1,391-acre Big Cedar Industrial Center, QTS’ project marks the city’s largest economic development project investment to date, investing $750 million toward its new data center campus.
“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,” said Interstate Power & Light Company President and Alliant Energy Vice President of Energy Delivery Mayuri Farlinger. “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 QTS site will join Google’s previously announced $576 million data center at the Big Cedar Industrial Center, which is expected to become operational in 2026. The company will build out the campus in phases over the next three years. Each phase will deliver one or more data centers, ranging from 300,000 sq. ft. to 1.4 million sq. ft. in size. Integration of a water-free cooling system will cut water consumption throughout each facility.
This investment will create an initial 30 new jobs over the first two phases, although the company notes this number has the potential to grow down the line. Once construction activity is underway, QTS has committed to providing $18 million over the course of 20 years to the city’s Community Betterment Fund, which funds projects and initiatives focused on current community needs.
“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,” said Cedar Rapids City Manager Jeff Pomeranz. “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.”
GREATER DES MOINES
EMPLOYS 37,285 RESIDENTS IN HIGH-TECH INDUSTRIES
MAINTAINS A COST OF DOING BUSINESS 12% LOWER THAN THE
NATIONAL AVERAGE
PRODUCES 55% OF ITS ELECTRICITY FROM WIND POWER.
