Microsoft has been given the go-ahead to build a massive $700m data centre facility in the rural US.

The Des Moines Register said that Iowa state authorities have approved a $20m tax credit plan, which would clear the way for the Redmond giant to begin work on its new data centre facility. The facility would be housed just outside the state’s capital city in West Des Moines.

While specifics on the data centre itself were not given, the report said that Microsoft’s total investment in the project could top $1bn.

The move adds Microsoft to a growing list of firms that have chosen the largely rural state as the site for a new data centre facility. With favourable tax policies and cheap land costs, Iowa houses large data centre facilities for Google and Facebook as well.

The state is also getting the thumbs-up from green technology advocates due to its heavy use of wind power plants. With energy-hungry data centres increasingly being built, environmental groups have pressured firms to choose locations that favor green energy sources over coal in local power plants.

While data centres in the US have largely been installed in more remote rural locations, many firms in the UK have chosen locations within London itself. The plan has drawn some criticism from opponents who claim that infrastructure and security concerns could arise when data centres are installed within a large city.