Data centers are no longer just infrastructure; they are a “backbone of our digital economy,” said Iowa Lt. Gov. Chris Cournoyer during the Technology Association of Iowa’s Iowa Data Center Summit.
The summit, held Oct. 2 in Ankeny, convened various stakeholders related to data centers.
“Every state is having a conversation about data centers, infrastructure and future energy demands, but Iowa isn’t just part of that conversation. We’re helping lead that conversation nationally,” said Brian Waller, president of the Technology Association of Iowa.
Cournoyer said Iowa is proving that “innovation can thrive in the heartland.”
“Our affordable and reliable energy, central geographic location, skilled workforce and strong business climate, including competitive tax incentives, have all contributed to making our state a natural home for investment and growth,” she said. “But we’re not just hosting data centers. We’re helping power innovation for the world.”
There are 27 total data centers in Iowa, taking up more than 6,600 acres of land at 15.3 million square feet of space, according to a resource guide from the Technology Association of Iowa.
Des Moines is ranked the ninth largest U.S. data center market, the association said.
Cournoyer said the momentum is good, but growth brings up important questions. “How do we ensure our infrastructure can keep up? How do we balance affordability with long-term sustainability? How do we build a workforce that’s prepared for the demands of tomorrow? And how do we make sure every Iowan, no matter where they live, benefits from the growth of this industry?” she said.
These questions require a coordinated response, from education and training, to ethics and responsible use, she said.
“That means AI standards in K-12 classrooms, professional development for educators and a pipeline of technical talent and trades professionals to design, build and maintain the infrastructure that underpins the entire ecosystem,” she said.
These large facilities allow for more secure and efficient national computing, said Khara Boender, senior manager, state policy for Data Center Coalition, a membership association for the data center industry, advocating for business climate policies and investments that support data center development and competitiveness.
“They provide fiber access, global connectivity and numerous on-site security measures, and depending on the region and jurisdiction, they also focus on sustainability and procuring clean power,” Boender said.
Data centers have become “central to expanding lives in a modern economy,” she said.
She pointed to a Deloitte study that showed that the average household in the U.S. has 21 connected devices.
“Device use is going to generate twice as much data over the next 10 years as it did in the past five,” she said. “So we’re going to be generating twice as much data in half the time, and that obviously will require additional digital infrastructure.”
The coalition has also learned that 95% of Fortune 500 companies rely on cloud infrastructure provided by data centers, she said.
“We also estimate that that number will continue to grow,” she said. “The last compounding factor here is that currently, only two-thirds of the global population is online and connected to the internet, but we expect the next third to come online in the next couple of decades, again, which will require even more data center infrastructure support.”
Boender said stakeholders should consider the national security implications of data centers.
“Much of the data center development, particularly on the East Coast and in Virginia, supports our national security and defense activities,” she said. “In that vein, there is an imperative to ensure that the domestic data center development and investment continues here in the U.S.”
Machine learning and artificial intelligence also play a significant role in the industry, with increasing reliance on cloud-based applications, she said.
The U.S. had 2,701 data centers in 2022, nearly doubling to 5,381 by March of 2024, according to TAI’s resource guide. U.S. data centers’ water use is projected to grow by 170% by 2030, the association said, and by 2033, 16-23% of U.S. electricity could be consumed by data centers.
Among the factors data center companies consider when deciding where to locate is access to water for cooling, Boender said, although “not every data center uses water as its primary source for cooling.”
Another factor is workforce, she said, noting that data centers need labor partners such as plumbers, steam fitters, pipe fitters, electricians and carpenters.
She said factors in choosing location vary by company, but it “boils down to fiber, energy, reliability, land availability, favorable tax, regulatory, climate and workforce,” she said.
Boender called Iowa a “growing market” with 4,000 jobs in direct employment at data centers in 2023 and 18,000 in indirect jobs.
Tyler Wyngarden, vice president of strategic partnerships at TAI, moderated a panel on a sustainable digital future, asking how Iowa can balance demand for data centers and environmental responsibility.
Gabriel Unruh, vice president of product and strategy at Ark Data Centers, said their data centers are very “water light.”
“That means we consume more electricity than some of our communities that consume more water,” he said. “Getting them to understand those challenges and understand where the industry is headed and how we can solve those enterprise challenges in light of that is very important.”
Wyngarden said his mom is worried “we’re going to run out of water,” and asked for panelists’ response.
Dan Harbeke, public policy and government affairs manager for Google, said, “Google has a goal to replenish 120% of the water that we use. And we’re about 66% there today.”
He said in 2024, Google had 112 projects globally where it replenished 4.5 billion gallons of water.