Microsoft investing $700 million in new data center

New center in Iowa will support Xbox Live and Office 365 and is testament to "growing demand for Microsoft's cloud services."

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Microsoft is investing $700 million in a new Iowa data center, the Xbox and Windows company has confirmed with the Des Moines Register.

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The center, known previously as "Project Mountain," will benefit from $20 million in tax credits per a partnership with the Iowa Economic Development Authority Board.

The new data center will support Xbox Live and Office 365, Microsoft general manager of data services Christian Belady told the publication.

"The expansion supports the growing demand for Microsoft’s cloud services," Belady said, noting that the endeavor represents "our latest in efficient data center thinking."

Microsoft has touted an updated Xbox Live and expanded cloud services for the Xbox One. Xbox Live will be supported by 300,000 servers, up from 15,000 for Xbox 360.

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