Microsoft decided to make a huge expansion to its existing server farm in West Des Moines.
According to Iowa officials involved in the deal, Microsoft will make a minimum capital investment of more than $677 million to expand its existing building on 40 acres that the company owns in West Des Moines.
The project will create 29 new permanent jobs and about 200 temporary construction jobs.
The state of Iowa kicked in $20 million in tax credits as incentives for Microsoft to expand, including $15 million in a sales and use tax refund during construction and a $5 million investment tax credit, for completing the project in West Des Moines.
The city of West Des Moines is also giving the project a five year property tax break worth about $6 million.
The project expansion will house servers, networking equipment and office space needed to operate Microsoft`s cloud services.
Construction is expected to begin later this summer and should wrap up by 2015.