A one-million-square-foot facility in Altoona, Iowa will become home to a new data center for Facebook. The city of Altoona has agreed to waive property taxes for the next 20 years in order to get Facebook to invest in their city. As an offset, Facebook execs have agreed to build a $500,000 water pumping station in the area in order to handle the increased need for clean water and stronger water pressure.
Big Companies Moving Away From Big Cities
Facebook and other tech giants have been moving away from West Coast cities for the past few years. Instead, they’re building big data centers in smaller Midwest locations. Senior manager for CBRE Group’s data center division stated in a recent press release that smaller Midwest towns offer lower land costs and lower building costs. Property in big cities like Los Angeles comes at a premium. Construction costs are higher and it’s much harder to find builders and contractors who aren’t already swamped with work.
In the Midwest, the lifestyle is slower and the air and water is often cleaner. There’s usually an abundance of building contractors available for any project.
Google, Facebook & Other Tech Giants Follow Suit
Google recently opened a big data center in Council Bluffs, Iowa and one in Lenoir, North Carolina. They have stated that they find these smaller towns very welcoming to these new construction projects. In addition, Apple has revealed its plans to build a new campus in Austin, Texas that will employ 5,000 workers eventually. Of course, Austin is not a small town by any means, but it does have a very eclectic vibe that many find fascinating. Besides being the home to Live Music Venues, Austin is known for its multitude of amazing food trucks.
As these big corporations continue to build in smaller towns across the U.S., we can expect other companies to follow suit. This should result in more money for these towns to build up their infrastructure. There will be a strong increase in the number of higher paying jobs as well.
New And Better Jobs
The new data center for Facebook will increase the company’s footprint to 24 states as well as creating 10,000 new construction jobs.
In a recent article from the New York Times, the idea that perhaps Mark Zuckerberg has become too big to fail was put forth. Regardless of the Russian election meddling scandal and the data breach that exposed the account information for tens of millions of users, Facebook continues to grow and profit.
Is Facebook Too Big?
An article in Forbes states that Facebook is now too big to fine for its transgressions. Even a $3 billion fine for bad behavior is still just chump change for the social media mega-giant. Mark Zuckerberg, a 34-year-old social media whiz, is worth approximately $86 billion. Though stock prices at Facebook have recently plunged, the company reported a hefty $40 billion in profits for 2017.