Facebook confirms its fifth data center in Altoona, Iowa. According to the Des Moines Register, Facebook plans to invest $400 million in the nearly 1 million-square-foot building. The deal between the company and the city of Altoona has agreed to waive property taxes for Facebook for 20 years.
The plan is known as “Project Sequelant” in city documents. The new H-shaped building will be on a site close to the company's other million-square-foot building, which is under construction. The site currently has four data centers, each offering between 476,000 square feet and 1,000,000 square feet of space. Another two data centers are under construction.
As per reports, even though there is tax exemption, the company will actually pay the equivalent of 60 percent of those taxes. Facebook will agree to pay the city $3 per square foot per year during that 20 years once it finishes the project and moves into the building. Based on the pay-per-square-foot plan, Facebook will have to pay around $3 million a year for the next 20 years.
Also, Facebook will contribute to the improvement of the water infrastructure. The company will make the payment for the construction of a new $500,000 pump station that will boost the water pressure for the data center, the Outlets of Des Moines, Bass Pro Shops and other undeveloped lands.
Various reports suggest that the Altoona City Council unanimously approved the development agreement. The terms of the deal were made public last week after the Altoona City Council meeting. These terms will remain the same for any future development by Facebook within the 20-year period.
The social media giant first expressed its interest in building a data center in Altoona in 2013. The company has so far invested nearly $1.5 billion to develop the site, expanding its footprint to 2.5 million square feet of building space.