Microsoft (NASDAQ:MSFT) is expanding its West Des Moines Data Center in Iowa for the third time, according to a press release from the Greater Des Moines Partnership released today. The new addition will have a minimum investment of $677.6 million, and comes four years after Microsoft opened its first Des Moines data center in 2009.

Microsoft General Manager of Data Center Services Christian Belady said in a statement today:

Microsoft has enjoyed a strong working relationship with the state of Iowa and West Des Moines and we are excited about our latest expansion project. The expansion of the West Des Moines data center is a win-win, bringing both new jobs to Iowa while supporting the growing demand for Microsoft's cloud services. The new facility is designed to provide fast and reliable services to customers in the region and features our latest efficient data center thinking.

Code-named "Project Mountain" by the Iowa Economic Development Authority, the final agreement includes eligibility for up to $20 million in tax credits. "Local incentives" from West Des Moines were also approved, but financial details were not disclosed in the release.

The center will focus primarily on Microsoft's cloud services. Construction is expected to begin later this year, with the expansion completed by 2016.

Fool contributor Justin Loiseau has no position in any stocks mentioned, but he is using Windows 8 to write this. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.

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