Cedar Rapids lands largest economic project ever: $750M QTS data center campus

Cedar Rapids has secured the largest economic development investment in its history — a minimum $750 million data center campus from QTS, a Blackstone portfolio company, on 612 acres of the city's southwest side.

The City Council approved the development agreement with QTS Cedar Rapids LLC on Jan. 28. The city and Alliant Energy jointly confirmed the project Feb. 12-13.

The campus will rise on land Alliant Energy has held since 2016 as part of the 1,391-acre Big Cedar Industrial Center, bordered by Edgewood Road SW, 76th Avenue SW, Fairfax Road, and the Union Pacific Railroad.

Construction will bring hundreds of trade jobs. Once running, the first two phases guarantee at least 30 full-time high-tech positions — 15 per phase.

QTS will pay up to $18 million over 20 years into the city-owned Community Betterment Fund after phase one finishes, money earmarked for local nonprofits and initiatives.

The facility will use a water-free cooling system, cutting water use dramatically compared with conventional data centers.

"QTS's arrival underscores Cedar Rapids' momentum as a center for growth and opportunity," Mayor Tiffany O'Donnell said in the city's release. "With a multi-million-dollar commitment to our community betterment fund, this investment brings high-quality jobs, drives economic progress, and strengthens our local initiatives and nonprofits."

Alliant Energy's Iowa president, Mayuri Farlinger, called the project "a testament to the region as a hub for innovation and investment" and pledged cost-effective power for the campus.

City Manager Jeff Pomeranz framed the win as proof that "meaningful partnerships, innovation, and leveraging local talent and infrastructure continues to position Cedar Rapids as a destination for global leaders like QTS."

Gov. Kim Reynolds credited "key partnerships, in this case, among the state, the City of Cedar Rapids, QTS, and Alliant Energy" and cited Iowa's "growth-friendly environment and a population known for its strong work ethic."

What happens next is less clear. The city's announcement gave no groundbreaking date, no completion timeline, and no details on tax incentives or subsidies inside the development agreement. The council's vote tally hasn't been released. QTS has not yet listed the Cedar Rapids campus on its public portfolio. As of May, the project's construction status — permits, site work, hiring — remains unconfirmed.