Iowa Data Center Capacity to Triple by 2031
The Common Sense Institute projects Iowa will triple its data center operations by 2031, adding billions to the GDP and creating thousands of high-paying jobs.
The Common Sense Institute reports that Iowa is on track to triple its data center operations by 2031. Companies have already invested $15.1 billion into the state's economy through 2026, with an additional $38 billion in announced investments projected between 2027 and 2031. These facilities are expected to contribute $18.5 billion to the state's GDP and generate a cumulative $9 billion from 2027 to 2031.
Employment in the sector is projected to grow from 12,600 to approximately 29,597 jobs by 2031. These positions are high-paying, with an industry average of $126,000 per year as of 2025, a figure that is roughly double the statewide average income.
Growth is heavily concentrated in Linn County, specifically in Cedar Rapids and Palo, which together account for one-third of the state's total capacity. Other major hubs include Des Moines and Council Bluffs. The expansion is driven by companies such as Google and Quality Technology Services.
This boom presents significant energy challenges. Existing and planned facilities could consume nearly half of the state's average 2024 electricity capacity. In response, utilities are planning new natural-gas plants and battery storage to meet the increased demand.