THIS WEEK'S ISSUE
7/12/2008 7:00:00 AM
High-tech changes to Iowa's image
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By Jim Masterson
Ask someone from out of state to blurt out the first thing that comes into their mind when you mention the word Iowa, and it's a safe bet that "corn", "soybeans", "the state fair" or "Field of Dreams" will quickly come out of their mouth. If you ask native Iowans the same question, you will likely get the same rural ties that outsiders conjure up.
We've all grown very comfortable with the stereotypical Grant Wood image of Iowa. Lines of cornstalks whipping past the window as you drive down country roads. Cows dotting every hilly pasture. Although outsiders and insiders alike see Iowa as largely agricultural, the state has many things to offer other than the blackness of its soil.
A year ago Google chose Council Bluffs as the location for a $600 million data center. This month, state officials announced that software giant Microsoft will take advantage of newly legislated tax cuts to construct and operate a $550 million data facility in the Des Moines metro area. When combined, the two initiatives will create around 300 permanent, full-time high-tech jobs and during construction will employ hundreds more.
So why did the likes of Google and Microsoft seek out a location that seems, by stereotype at least, to be the polar opposite of their high-tech identities? The answer is not that hard to understand when you look at the costs and risks associated with Iowa and other parts of the country.
Land. To build a data center, you need access to land that can be obtained at reasonable prices. Iowa has plenty, especially when compared to the crowded cities on both coasts.
Power. Iowa has access to reasonably priced and highly available power. Both east and west coasts have had periods of rolling brownouts with unpredictable power levels and the possibility of spikes and surges.
Connectivity. They're not major markets, but Des Moines and most of the other cities in Iowa are hooked into a fiber-optic mesh that can provide Google and Microsoft with the bandwidth they need.
Risk. In general, Iowa is safe from most large-scale risks such as terrorism, earthquakes, hurricanes, etc. Known localized risks (tornados and flooding) can be avoided through location choice and building design.
Each year The Boyd Company reviews areas of the country on behalf of those looking to build data centers. In the 2008 survey, Des Moines, Ames and Council Bluffs are tucked into the top 10 most attractive places to build a data center - the most cities of any state in the top 10.
Google and Microsoft are doing their share to break down the stereotypes of what Iowa is and show us what Iowa can be. As a technology employer and operator of several Midwest data centers, I can tell you it's not easy to find the right talent for the engineering, networking and software design positions that are available. It's important for us all to believe that we have what it takes to be a top contender in technology and start building the infrastructure to emphasize our technology needs and retain talented university graduates.
Jim Masterson is chairman and CEO of LightEdge Solutions.
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