Stephen Moore argues Iowa data centers drive economic growth

Stephen Moore, a Fox News contributor, asserts that data centers function as economic engines rather than mere buildings, using Council Bluffs, Iowa, to illustrate how digital infrastructure drives regional prosperity. Moore highlights that the town, once the eastern terminus of the transcontinental railroad under Abraham Lincoln’s 1863 executive order, has become a central hub for the cloud computing industry. Google selected Council Bluffs in 2007 for one of its first company-built data centers, recognizing the strategic value of America’s geographic center for infrastructure.

Since breaking ground in Council Bluffs, Google has invested more than $20 billion in Iowa. The company recently committed an additional $7 billion to expand its Council Bluffs operations and construct a new campus in Cedar Rapids. Moore notes that Google is not the only major technology firm investing in the state; Meta operates one of its largest data center campuses in Altoona, while Microsoft has invested billions in West Des Moines. This concentration of capital has transformed Iowa from a state critics once dismissed into a key junction point for the cloud industry.

Moore counters the argument that data centers offer few jobs by comparing them to the transcontinental railroad, noting that the economic value lay in what the infrastructure enabled rather than in the number of stationmasters. He points to a partnership between Google and the electrical training ALLIANCE, an entity created by the International Brotherhood of Electrical Workers and the National Electrical Contractors Association. This partnership aims to expand Iowa’s electrical workforce by training 700 apprentices in Cedar Rapids by 2030. The roles include electricians, pipefitters, welders, and HVAC technicians, positions that Moore argues do not require four-year degrees or student debt. Construction of a single campus employs more than a thousand tradesmen for years.

The economic impact extends beyond direct employment. Google’s presence generated $2.7 billion in economic activity for Iowa last year. Moore details specific community benefits, including Google extending its wireless network to provide free internet to Council Bluffs students who lacked home access. The company has also funded local schools, nonprofits, and the city’s free public Wi-Fi. Additionally, Google committed to replenishing 120 percent of the water it consumes, beginning with a $1.3 million conservation project in the Missouri River Basin.

Moore attributes Iowa’s success to state and local leadership, including Governor Kim Reynolds and Senator Joni Ernst, who competed for investment through low taxes and sensible permitting. He contrasts this approach with other states that delayed decisions through hearings and conditions, allowing capital to move elsewhere. Moore describes the current AI buildout as the largest infrastructure project in American history, surpassing the railroads, rural electrification, and interstate highways in real dollars. He concludes that communities welcoming these technology companies will reap benefits similar to those Council Bluffs experienced when it became a central point of industrial America.