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A new coalition of Iowa business and labor leaders wants to make sure the state benefits as tech companies rush to build massive data centers across the country.
The group, called Growing Iowa’s Economy, launched Aug. 3. It includes labor unions, energy companies and chambers of commerce from across the state. Members say they want to support new data centers while protecting Iowa families from rising costs.
The coalition laid out several principles for building data centers: data center companies, not everyday Iowans, should pay for the power they use and any upgrades needed for the electric grid. Iowans should also have a say in big energy decisions that affect their communities.
Dan Culhane, president of the Ames Regional Economic Alliance, said companies plan to spend tens of billions of dollars building data centers nationwide in the coming years. He said Iowa should get its share of that investment.
“Through responsible and regulated development, these types of investments will deliver more economic opportunities to more Iowans,” Culhane said.
The group also said it wants new developments to respect Iowa communities. That means limiting local disruption and protecting the environment.
Andy Roberts, president of the Iowa Building and Construction Trades Council, said the projects could create thousands of jobs.
“This level of job creation is absolutely essential to ensure working Iowans in every region of the state have access to the types of economic opportunities,” Roberts said.
Jobs and tax dollars at stake
The biggest facilities, called hyperscale centers, can require up to 7,000 workers during construction.
The new tax money could matter even more for small towns. John Hall, president of the Marshalltown Area Chamber of Commerce, said new property taxes from data centers could fund schools, hospitals and roads.
“It’s money that goes directly into our schools, hospitals, roads, public safety and real tax relief for the families who live here,” Hall said.
The coalition includes more than two dozen organizations, ranging from labor unions to energy providers such as Alliant Energy. Members say they plan to keep pushing lawmakers to support smart, fair rules for future data center projects in Iowa.
Business leader weighs in on data center discussion
Roger Underwood, a lifelong entrepreneur, investor and philanthropist, defended the Lightedge data center project. He said many residents misunderstood what the project actually was.
“Lightedge was never a hyperscale data center,” Underwood said in a statement to the Iowa Media Wire, which also appeared in the Ames Tribune.
It was a smaller regional facility that would have used 10 to 15 acres of land and would have relied on the city’s existing water and sewer system, Underwood said. He also said Lightedge would have paid for its own electrical upgrades.
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