Google, one of the world's largest Internet search engines and providers of Internet services, has announced that it is investing US$300 million in building another data centre in Council Bluffs, Iowa.

The company’s existing million data centre was opened in 2009, and contains computer systems that support services such as Google Search, Gmail and Google Maps. Construction has now begun on a new site near Bunge and Wabash Avenues.

Last week, the board of the Iowa Economic Development Authority awarded tax benefits through the High Quality Jobs program to Google for the expansion of its current operations in the Council Bluffs area. Local media sources quoted Debi Durham, director of the state Department of Economic Development, who said the move makes good economic sense. She noted that Google's proposal for its first Council Bluffs data centre was for US$300 million, but that it doubled to US$600 million by the time the facility opened in 2009. "I well anticipate them doing that again," Durham said. "But their (tax incentives) are capped at US$300 million."