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Microsoft investing $700 million in Iowa data center

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Microsoft will invest $700 million in a new data center located in West Des Moines, Iowa, the Des Moines Register reports.

As part of a partnership with the Iowa Economic Development Authority Board, the state of Iowa approved $20 million in tax credits to Microsoft's data center currently known as "Project Mountain."

These centers will support both Xbox Live and Microsoft's cloud services, Microsoft data center services general manager Christian Belady told Des Moines Register. "The expansion supports the growing demand for Microsoft's cloud services," he said, adding that it represents "Our latest in efficient data center thinking."

Microsoft previously touted the use of Xbox Live and cloud services for its upcoming Xbox One console, stating that Live will be powered by 300,000 servers. Comparatively, today there are roughly 15,000 servers powering Xbox Live.