Microsoft Postpones Iowa Facility

Software giant Microsoft ( is postponing plans to construct a $500 million data center in West Des Moines, Iowa, citing falling demand for personal computers as its reason, according to reports by The Associated Press.

Jeff Pomerantz, West Des Moines City manager, received a call from Microsoft on Friday morning informing him that plans for the data center been postponed.

The facility, which is expected to create 75 jobs, was supposed to begin construction this spring or summer.

Microsoft announced Thursday that it would cut 5,000 jobs -- the first time layoffs ever in its 34-year history.

The company reported its fiscal second-quarter earnings early on Thursday, announcing an 11 percent drop in profits.

The Iowa Transportation Committee has also approved a $3.4 million grant to help fund costs of road improvements at the West Des Moines site.

In September, the company opened a $550 million, 470,000-square-foot data center in San Antonio, which provides the company's web-based applications hosting backbone.

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