Apple Inc. (NASDAQ:AAPL) has announced that its data center expansion plans in Reno and the construction will reportedly cost $1 billion.

Apple’s data center expansion plans will reportedly set the company back a cool $1 billion, making it a major investment on the company’s side. The company gained approval for the expansion plans on Wednesday as part of a deal that would allow it to take advantage of tax incentives amounting to millions. The decision was passed by a vote in which only one person voted against. The agreement will allow the tech firm to acquire land in downtown Reno. It opted to purchase rather than leasing which would have qualified Apple for a 0.5 percent tax rate.

Apple is expanding its data center to meet rising demand in cloud storage

The decision to put the data center expansion plan to a vote was made after Apple exec Mike Foulkes announced the $1 billion to be spent on the expansion. However, the plans had been in the pipeline since 2014 though they were delayed because it took time filing for permits for the construction of additional wings for the first data center. The expansion will also be advantageous for the Reno community because it will create new jobs.

“We’re excited to be increasing our contributions to the local economy with an additional $1 billion investment to expand our data center and supporting facilities,” stated Apple spokesperson John Rosenstock.

Rosenstock further pointed out that Apple will hire 100 new employees and the construction of the facility would bring about 300 new jobs. This is the second massive investment that the company has announced this month. Just a month ago, Apple CEO Tim Cook revealed that the firm had set aside a $1 billion fund aimed towards the creation of 1,000 manufacturing jobs throughout the U.S. though he did not go into details. Other than the data center expansion, Apple is also planning to build a $4 million shipping facility in downtown Reno.

Apple stock closed the latest trading session on Wednesday at $153.95 after increasing by 0.86% from the previous close.

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