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Influx of data center construction workers drive record hotel tax revenue in area
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The Mighty 1630 KCJJ
Hunter08/11/26Hotel stays in Cedar Rapids and the surrounding area are generating record tax revenue, attributed to the influx of data center construction workers.
Cedar Rapids has a 7% hotel/motel tax, which is split between non-profits and the city’s general fund.
Additionally, Escucha Mi Vos says Cedar Rapids renters are seeing increases due to demand for housing.
They issued a report entitled “The Data Center Housing Squeeze in Cedar Rapids” that says average advertised rent in Cedar Rapids jumped from $975 in June 2025 to $1325 in June of this year, an increase of nearly 36 percent.
The report said over 4500 people were working at the QTS data center site, with approximately 7000 expected at peak construction, further squeezing housing availability.