Large energy users and data centers

What are data centers and how do they impact energy customers?

Data centers have been around for decades.

A data center is a physical room, building or facility that houses IT infrastructure that supports applications and services.

Data centers are part of everyday modern life.

You access a data center whenever you use your cell phone, a credit card or any online activity. Data centers are essential for businesses, governments and organizations that rely on technology to operate and communicate.

You may have heard a lot about data centers lately.

That’s because companies are building new data centers across the country, including in Iowa and Wisconsin, to meet the demand for new technologies like AI-powered software and applications.

There’s a lot of conflicting information about how data centers impact energy customers.

Here you’ll find facts and the latest information about data centers within the communities Alliant Energy serves.

Data centers and energy FAQ

Will data centers increase my energy rates?

Can the local power grid handle this increase in energy demand?

We have decades of experience ensuring an adequate energy supply. We are required to have enough power, plus a reserve margin, to serve customers no matter what. Large energy users like data centers haven't changed this for us.

Though the energy growth we see now is extensive, our systems and processes will make sure there is enough supply to meet demand.

How will this increase in energy demand impact the environment?

Our Energy Blueprint includes a balanced mix of wind, solar, hydropower, coal, natural gas and battery storage. We designed it to deliver the reliable, cost-effective energy our customers count on. We’re also modernizing our distribution system to be smarter, more adaptable, resilient and ready to meet evolving energy technologies.

Environmental compliance is part of our commitment to acting for tomorrow. We work every day to comply with federal, state and local environmental rules.

How will data centers impact the local economy?

Do data centers use large volumes of local water?

Technology has advanced the past several decades. Many modern data centers now use an innovative closed-loop water system that does not require large volumes of water from the local supply.

When these closed-loop systems are used, once the cooling technology is operational, municipal water is only used for standard building needs such as restrooms, kitchens, cleaning and irrigation — like many other commercial facilities.

The QTS data center in Cedar Rapids will use a closed-loop system.

Data centers within Alliant Energy's service area

QTS | Cedar Rapids, Iowa

QTS announced its Cedar Rapids data center campus in January 2025. It will be located on 612 acres of the Big Cedar Industrial Center. The planned $10 billion investment is the largest economic development investment in the state of Iowa and city of Cedar Rapids' history.

Community and economic impact: QTS will contribute up to $18 million over 20 years to the City of Cedar Rapids-owned “Community Betterment Fund” following the first phase of construction.

“QTS’s arrival underscores Cedar Rapids’ momentum as a center for growth and opportunity,” said Cedar Rapids Mayor Tiffany O’Donnell. “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.”

Learn more

Google | Cedar Rapids, Iowa

In May 2025, Google announced a data center project at the Big Cedar Industrial Park in Cedar Rapids, Iowa.

Community and economic impact: Google is investing an additional $7 billion in Iowa within the next two years in cloud and AI infrastructure, as well as in expanded workforce development programs. This builds upon investments the company has made in the state since 2007.

Google, along with electrical training ALLIANCE (etA), is also providing funding to support an innovative program to help increase the electrical workforce pipeline in Iowa by 95%. This will help develop the labor force needed to build new energy infrastructure.