The Strategist

Apple will create data centers in Iowa in exchange for tax breaks of $ 208 million

08/25/2017 - 12:03

Apple will build two data centers in the state of Iowa and, in return, will be exempted from paying taxes in the amount of $ 208 million. The project’s total cost will amount to $ 1.4 billion, AP reported on Thursday referring to the director of the Department of Economic Development of Iowa, Debi Durham.

According to her, Apple promised to create 50 new jobs in the city of Des Moines (Iowa) and agreed to purchase a plot of land with an area of 668.9 hectares for the construction of two facilities. In addition, Tim Cook, president of the corporation, who met on Thursday with Governor Kim Reynolds, will invest $ 100 million in a local fund designed to finance  reconstruction and renovation of the streets, parks and libraries of the city.

"We at Apple admire your achievements and want to make a contribution over time," Cook said at a meeting with the Governor of Iowa. The head of the corporation explained that this state attracted him with a developed system of obtaining energy from renewable sources, a minimum number of natural disasters and a favorable tax regime.

The new data center will support functioning of the App Store, Siri, Apple Music, iMessage and other Apple’s services in North America.

Apple will invest about 1.3 billion dollars in the new data center, as well as will provide more jobs for more than 550 people. Apple employs more than 10 thousand people in Iowa in total, and all in all, Apple has created more than 2 million jobs in the US. The company confirmed that the new data center will work completely from renewable sources of energy since the day of its opening. Construction will begin next year, and opening of the data center is scheduled for 2020.

In addition, Apple has promised to invest up to $ 100 million in improving the town’s infrastructure, in particular, in construction of parks, libraries, recreation areas.

According to the results of the third financial quarter, which ended on June 30, Apple's revenue increased to $ 45.41 billion, which exceeded the forecasts of experts. Last year, in the third financial quarter, which is traditionally considered to be the weakest for the company in terms of revenues, revenue was $ 42.36 billion. Net profit for the period was fixed at $ 8.72 billion, or $ 1.67 per share (last year - $ 7,8 billion, or $ 1.42 per share).