Cedar Rapids becomes a data center hub as Google and QTS build side by side
A $576 million Google campus and a planned $10 billion QTS buildout are rising simultaneously on adjacent southwest side sites, reshaping the city's economic profile.
Cedar Rapids has never seen anything like this: two of the largest economic development projects in its history, under construction at the same time, on neighboring parcels off Edgewood Road SW.
Google is investing $576 million for at least four large buildings in the Big Cedar Industrial Center, with the first phase slated for completion in 2026. QTS Data Centers, owned by Blackstone, is planning a $10 billion campus across roughly 612 acres with up to seven buildings — the first three of which reached their topping-out milestone on Oct. 22.
The scale marks a departure for a city known for Quaker Oats, Rockwell Collins, and GPS engineering. Data centers bring a different footprint: massive power draws, significant water needs for cooling, and relatively few permanent jobs compared to construction employment. QTS operates more than 75 facilities across the U.S. and Europe; Google's Cedar Rapids site joins a national network powering search, cloud, and AI workloads.
Both projects moved fast. City Council approved QTS in January 2025. Google broke ground in late May with Ruth Porat, Alphabet and Google's president and chief investment officer, emphasizing scientific breakthroughs, cybersecurity, and job creation. QTS followed in late July with Gov. Kim Reynolds and co-CEOs Tag Greason and David Robey, who cited the city's infrastructure and workforce.
The practical impacts are still unfolding. QTS has not disclosed its tenant. The $10 billion figure appears to represent a full buildout, while earlier accounts noted an initial investment exceeding $750 million. Google's water consumption — expected to rank among the city's largest users — has been described as manageable by the utility and state geologist, but no public study has been released. Tax incentive packages from the city and the Iowa Economic Development Authority have not been detailed publicly. Permanent hiring numbers and timelines remain unspecified.
For the southwest side, the transformation is already visible in truck traffic, crane skylines, and construction crews. For the region, the test is whether the grid, the water system, and the labor market can absorb two hyperscale campuses without crowding out the manufacturers and employers that built Cedar Rapids' economy.
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Sources
- 1.Fast start to Cedar Rapids data center projects — The Gazette (Cedar Rapids/Iowa City)
- 2.QTS Announces New, World-Class Data Center Campus in Cedar Rapids — QTS Data Centers (official press release)
- 3.Groundbreaking set Tuesday for QTS data center project — Corridor Business Journal
- 4.QTS breaks ground on data center campus in Iowa — Data Center Dynamics
- 5.QTS celebrates topping out milestone at Cedar Rapids data center — CBS2 Iowa (Iowa's News Now)
- 6.Google publicly named as company behind $576M data center project in Cedar Rapids — CBS2 Iowa (Iowa's News Now)
- 7.Cedar Rapids officials give support for Google data center — KCCI (Des Moines)
- 8.Cedar Rapids legislators announce support for proposed Google data center — KWWL (Waterloo/Cedar Rapids)
This story was researched and drafted with AI assistance and reviewed by a human editor before publication. Read our Editorial Standards & AI Disclosure. Spot an error? Request a correction.
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