Microsoft Scales Back Plans for Iowa Data Center

Microsoft is returning to its Iowa data center project, though it's been vastly scaled back, according to InformationWeek. In 2008, the company announced plans to build a $500 million data center West Des Moines. That project was put on hold during the economic downturn.

The new project is expected to cost $100 million, according to the Des Moines Register, which reports:

Microsoft said last week that the company was scaling back its plans, because its next-generation technology had dramatically evolved and because demand had changed.

Local governments still are falling all over themselves to seal the deal on this project, according to Data Center Knowledge, but state tax credits have been reduced from $2.1 million to about $590,000.