QTS Data Centers, a portfolio company of Blackstone, has unveiled plans for a massive new data center campus in Cedar Rapids, Iowa, in what local officials describe as the largest economic development initiative in the city’s history. With an estimated $10 billion investment, the project signals a long-term commitment to expanding high-performance digital infrastructure in the U.S. Midwest and is expected to reshape the regional technology and economic landscape.
The new campus will span 612 acres in the Big Cedar Industrial Center and accommodate seven large-scale data center buildings. According to QTS, the buildout will be phased and will generate over 2,000 high-quality jobs, both in construction and ongoing operations. Iowa Governor Kim Reynolds called the announcement “a powerful endorsement of Iowa, our communities, and our potential,” noting that the scale of the investment makes it the largest in the state’s history. She framed the development as a catalyst for long-term prosperity, signaling Iowa’s growing role in the national technology sector.
Cedar Rapids Mayor Tiffany O’Donnell emphasized the project’s transformative potential, describing it as “a new era” for the city that will blend innovation with economic growth. She highlighted that the addition of world-class data infrastructure would mark “the next big chapter” in Cedar Rapids’ economic story.
A major component of the project is its environmental strategy. Partnering with Alliant Energy, QTS will deploy carbon-free energy solutions and leverage its proprietary water-free cooling technology, which is designed to significantly reduce environmental impact. The company estimates the approach will save roughly 4 billion gallons of water annually once the site is fully operational – an important figure given that many traditional data centers rely on evaporative cooling systems with high water consumption.
Community Investment
Lisa Barton, President and CEO of Alliant Energy, said the collaboration exemplifies their goal of delivering reliable, sustainable energy that drives economic growth, pointing to synergies with ITC Midwest in enabling the project.
Beyond its technical scope, QTS is embedding community investment into its operational plan. The company will contribute up to $18 million to the city’s Community Betterment Fund and support local non-profits. It is also committing $100,000 annually for five years to the Cedar Rapids ReLeaf program and Monarch Research, aiming to replace 20,000 trees in the area – a contribution meant to offset environmental impacts and enhance local green spaces.
QTS Co-CEOs Tag Greason and David Robey said the decision to build in Cedar Rapids was driven by the city’s robust infrastructure, skilled workforce, and forward-thinking civic leadership. They noted that the rapid rise of artificial intelligence and data-driven industries is fueling demand for secure, scalable infrastructure, and positioned the project as both a business move and a statement about Iowa’s willingness to embrace technological innovation. The executives stressed that QTS’s vision includes being “a good neighbor” while advancing sustainable and future-ready digital ecosystems.
The Cedar Rapids development reflects a broader trend of hyperscale and enterprise data center operators seeking out secondary U.S. markets with strong infrastructure, reliable energy, and community alignment. For QTS, it marks a significant expansion in the Midwest and underscores the strategic role the region is poised to play in supporting global data growth.
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