Council Bluffs: Google Data Center Project

[erik]

Nobody is revealing it, however many rumors about Google expanding into CB for months now, and in the same location...

http://www.omaha.com/index.php?u_page=2 ... id=2363258

[WesternIowan]

Nobody is revealing it, however many rumors about Google expanding into CB for months now, and in the same location...

http://www.omaha.com/index.php?u_page=2 ... id=2363258

Although I cannot reveal my source (never know who's reading and I don't want to get the company in trouble), I know for a fact that this is Google. Hopefully this will spur other development in the area around it, there is still a good amount of land in this area that isn't developed.

[Mastermind]

Great News!! What type of operations would Google have in CB? Is a technology firm considered "industrial"? Either way this is great news for Council Bluffs.

[WesternIowan]

Great News!! What type of operations would Google have in CB? Is a technology firm considered "industrial"? Either way this is great news for Council Bluffs.

A very, very large data center.

[erik]

Somebody said on another board that they would build up to NINE buildings!!

[Des Moineser]

It'd be a server farm, wouldn't it?

[DMRyan]

Wow, this could approach a Wells Fargo sized development announcement if all of this comes true. It sounds like Google is placing several of these types of centers around the country right now.

Great news for Council Bluffs and Omaha too.

Now, if only Iowa could land that rumored car plant, this state would be a nice roll for the year.

[jhuston]

Hardly of Wells Fargo scale (at least in terms of jobs)... but it would be a great win for Council Bluffs nonetheless.

http://www.omaha.com/index.php?u_page=1 ... id=2364342

The large project Council Bluffs is wooing would bring more than 150 high-tech, high-paying jobs to the metro area, said a Bluffs city official.

City Councilman Darren Bates said that although he hasn't been told the name of the company in question, he has been told the jobs would have a typical salary of $60,000.

Although I'm disappointed this came at the expense of Omaha's only remaining drive-in theatre. Hopefully the Bluffs Drive-in owner keeps his word and builds another one.

[econboy]

Great news for CB! Awesome!

[NewHtsDSM]

Having operations of the hottest tech company in the world is a MAJOR boost to CB/Omaha. Google is aggressively expanding their offerings and that could boost their operations in CB even more down the road.

Not to mention the spinoff of recruiting other tech companies to the area, having Google on the resume.... doesn't get much better than that.

[Mastermind]

Legislators work to land 'multibillion investment'
The investor's identity is secret. But Iowa might offer incentives like those Google has received elsewhere.

BY JASON CLAYWORTH AND DONNELLE ELLER
REGISTER STAFF WRITERS


April 18, 2007
Add comment



Two Iowa lawmakers say a large Internet company is weighing whether to locate part of its operation near Council Bluffs - and the House is moving ahead with incentives for that company.

"The best information we have: This could be at least a $600 million investment with 100 jobs at $50,000 to $130,000 per job or as much as 10 times that number," said Rep. Phil Wise, a Democrat from Keokuk and a member of the House's Ways and Means Committee, which passed the bill with the incentives on Tuesday.

"We have the potential here for a multibillion investment in Iowa."

Rep. Doug Struyk, a Republican from Council Bluffs, said the technology company is looking to locate in that area.

But neither lawmaker would state the name of the company that would benefit from tax breaks for "web search portal businesses."

The legislators were asked whether the company is Google. Earlier this year, it was announced that Google was creating a $600 million data center in North Carolina - after receiving an estimated $260 million in incentives over 30 years.

But Wise and Struyk both said they were unable to disclose the company's name without jeopardizing the deal.

The company is in talks with the Iowa Department of Economic Development, Wise said.

Essentially, the incentives would offer sales-tax and use-tax breaks on equipment, machinery and electricity on an investment of at least $200 million. Wise predicted the bill would be approved early next week by the full Iowa House. Kansas, Missouri and Oklahoma are all vying for the business, he said.

"If we fail to enact this incentive, I believe there will be other states that will secure the investments of companies like this," Wise said.

A spokesman for the Iowa Department of Economic Development said Tuesday that it had no application for incentives from a company matching Google's description. The Iowa Economic Development Board, which weighs incentives for companies, meets on Thursday.

The Omaha World-Herald reported last week that work is under way near a 180-acre site controlled by the Council Bluffs Industrial Foundation.

Gov. Chet Culver is scheduled to visit Council Bluffs today but spokesman Brad Anderson said Tuesday that the governor is traveling to the city to speak to the Council Bluffs Chamber of Commerce about the proposed $100 million Iowa Power Fund.

In addition to the North Carolina project, Google has also announced this year it will build a $600 million data center, sometimes called a "server farm," in South Carolina. The company also received significant incentives for that center, according to the Charlotte News & Observer newspaper.

Computerworld, an information systems newsweekly published in New Zealand, published an article recently stating that Google was building data centers at a quick pace.

"Google is on its way to becoming the McDonald's of data centres - serving billions of bytes daily - if it keeps up with what seems to be an extraordinary pace of building IT facilities," the article said.

"Several of the new and prospective facilities, including one that Google built last year in The Dalles, Ore., share some common characteristics," the article continued. "For those data centres, Google has selected or is considering rural locations where electricity is both plentiful and available at relatively low costs."

In North Carolina, city, county and state governments agreed in January to provide Google with incentives that include sales-tax exemptions on electricity use and computer-related purchases and local tax breaks. The California-based company has promised to build a data center that is expected to employ about 210 workers who would earn an average of $48,000 annually.

Google is the world's most-used Internet search engine. It reported $10.6 billion in sales in 2006 and earnings of nearly $3.1 billion.

[erik]

Somebody was stating that the governer of Iowa was in CB on the same day...

[Better Life dude]

The legislators were asked whether the company is Google. Earlier this year, it was announced that Google was creating a $600 million data center in North Carolina - after receiving an estimated $260 million in incentives over 30 years.

OK all you absoulutedsm smarty pants readers, let's do the math: $260 million in tax breaks & incentives over a 10 year period to create 100 well paying, permanent jobs, That's $2,600,000 of incentives per job created.
$2.6 MILLION PER JOB!!!
I don't know the overall state tax revenue on an employer with 100 jobs - what the state's tax take is - but it will never come close to the $2,600,000 per employee. Let's say they collect $5,000 per employee per year in income tax: That's $5,000,000 in income tax revenue for 100 emplyees for the 10 year time period. Hmmm, give a way $260 million to get back $5 million. Can't Nebraska take Google's business instead?

[Mastermind]

your forgeting about property taxes. these are very high paying jobs as well. Obviously this is what other markets are willing to pay for a project like this, competition is fierce

[jhuston]

A commitment spread over 30 years as well (in North Carolina's instance... which actually brought 200 jobs... so you're actually talking $43k a year for these jobs + other tax revenue... not to speak of the boost those 200 people would give to the local economy).

[Trypticon]

your forgeting about property taxes. these are very high paying jobs as well. Obviously this is what other markets are willing to pay for a project like this, competition is fierce

but who benefits?

Nebraska or Iowa?

i'd personally live in Omaha over Council Bluffs.

[Mastermind]

Well taxes go to Iowa, and additional high tech companies may chose to locate close to the facility. They had similar questions in Florida when the State offer $350million in incentives. It looks as if the first spin-off has formed near the Scripps facility.

The Orlando Sentinel reports that Scripps Florida has spawned its first private drug-discovery firm, Xcovery Inc., which has an office in West Palm Beach. Xcovery has licensed intellectual property developed in scientist Chris Liang's lab at Scripps in Jupiter and hopes to develop medications to fight inflammation and cancer.

[erik]

In the omaha world herald today, it said that this company that is looking to expand in CB today, would start with 150 employees and possibly expand up to 10x that amount!!! salary ranges from $50,000-$130,000 a year... And the other day Google executives were meeting with stratcom and the governer of Iowa was in CB...hmmmmm

[econboy]

OK all you absoulutedsm smarty pants readers, let's do the math: $260 million in tax breaks & incentives over a 10 year period to create 100 well paying, permanent jobs, That's $2,600,000 of incentives per job created.
$2.6 MILLION PER JOB!!!
I don't know the overall state tax revenue on an employer with 100 jobs - what the state's tax take is - but it will never come close to the $2,600,000 per employee. Let's say they collect $5,000 per employee per year in income tax: That's $5,000,000 in income tax revenue for 100 emplyees for the 10 year time period. Hmmm, give a way $260 million to get back $5 million. Can't Nebraska take Google's business instead?

WHY oh WHY would we want to concede something like this to someone else??????????????? If you don't like this than you can go back to living in 'old' Iowa where nobody wants to stay or live/have a good job, etc.

Even if these incentives don't necessarily add up to a direct payoff, all the spinoff development this will attract will go above and beyond the initial cost. Also remember they probably will add more than just 100 jobs over time.

I personally don't believe that the government getting their dues is always the most important thing, at least immediately. Sometimes vision and foresight goes a long way. The government doesn't seem to care either, otherwise the state wouldn't be offering these incentives.

I am PUMPED we are in line for this and I feel confident we'll land this project!

Can't Nebraska take Google's business instead?

...Spoken like a true 'fuddy-duddy'!

[DMRyan]

I'm holding out for the official press release on this one, so it can be determined how many jobs and how much of a benefit this can have on Council Bluffs from a more official source.

I think the precident and momentum in high tech industries could be just as important here than breaking down incentives paid per job.

[Better Life dude]

I'm no fuddy duddy, but sometimes you have to know how to crunch the numbers & ask, does this deal make sense?

A not very great analogy would be kind of like buying tech stocks in 1999 - or overpaying for anything - no matter how shiny & bright & cool & techy & trendy it is. Would you give THAT much money for AOL or Yahoo or some other not so fashionable internet company to bring 100 jobs to Council Bluffs. No. I'm saying paying that much money to bring Google to town is overpaying.

[Mastermind]

AOL no, Yahoo, yes.

[Better Life dude]

Hey, it looks like state tax help is on the way for Google's project in Council Bluffs. Here's an article updating the status of legislation. Looks like this bill will have clear sailing to the Governor's desk for him to sign. The article doesn't do the math on what total savings this could mean to Google. Also note the pundits with bad puns in the article.

Existing firms may be aided by tax breaks
A possible package to lure Google to the state could have a wider effect.

By JONATHAN ROOS
REGISTER STAFF WRITER

April 26, 2007
Iowa companies in the computer services business could get in on some of the tax breaks being proposed by legislators to lure a large Internet company to the state.

Google is said to be eyeing a Midwest location for expansion after creating a $600 million data center in North Carolina.

The Senate on Wednesday approved a bill already approved by the House that, with Google in mind, would offer a state sales tax exemption on purchases of equipment, machinery and electricity on an investment of at least $200 million.

The Senate attached an amendment that would offer Iowa computer services companies a refund of sales taxes paid on electricity over five years.

"What is good for the Google is good for the gander by helping existing Iowa businesses," said Sen. Jeff Danielson, a Cedar Falls Democrat.
To qualify, Iowa companies must have at least a $1 million investment in their businesses and meet federal energy and environmental design standards.

"With the passage of this bill, I hope we create a gaggle of Google-type businesses here in the state of Iowa," said Sen. Bill Dotzler, a Waterloo Democrat.

Google is considering sites in the Council Bluffs area. Kansas, Missouri and Oklahoma also hope to land the business.

The Senate approved the entire package of tax incentives contained in House File 912 on a 47-2 vote. The bill returns to the House for more debate.

Reporter Jonathan Roos can be reached at (515) 284-8443 or [email protected]

[Mastermind]

U.S. Inquiry Into Hiring at High-Tech Companies

Published: June 2, 2009
SAN FRANCISCO — The Justice Department has begun an investigation into whether the recruiting practices of some of the largest technology companies violated antitrust laws, according to two people with knowledge of the investigation....“If there is a naked agreement by companies in an industry not to hire each others’ employees or an agreement to fix wages, that would be an antitrust violation,” said Herbert Hovenkamp, an antitrust expert at the University of Iowa College of Law.

http://www.nytimes.com/2009/06/03/technology/companies/03trust.html?ref=technology

[econboy]

Interesting...

Don't know if it will affect projects and such overall but certainly interesting.

If they have been doing this and have to stop then that actually makes the market a bit more competitive in my opinion. There will be competition for better wages and bit more of a hiring pool.

[Mastermind]

Interesting, Google has gotten federal approval to buy and sell energy.
http://mashable.com/2010/02/20/google-energy/

[Mastermind]

Google’s ever-expanding empire has added another branch: subsidiary Google Energy has been granted an order by the Federal Energy Regulatory Commission to buy and sell energy at market rates.

http://mashable.com/2010/02/20/google-energy/

[Mastermind]

Google Energy has completed its first deal and will buy and sell wind energy from NextEra Energy's Wind Farm in Story and Hardin counties. I have to think that this, in addition to the Council Bluff Project, will aid Iowa in winning the Google Fiber contest.

http://googleblog.blogspot.com/2010/07/ ... -with.html
http://www.pcmag.com/article2/0,2817,2366789,00.asp

[Mastermind]

http://www.desmoinesregister.com/articl ... |Frontpage

[Mototail]

And:
http://www.kcci.com/news/project-econom ... index.html