Two earlier attempts to build a major racing facility in Newton failed before the current track was developed. In 2000, Kentucky Speedway developer Jerry Carroll proposed a 1-mile, 40,000-seat track but abandoned it within months. California businessman Jerry Lowrie stepped in to lead a revised project that sought $20 million from Iowa's Vision Iowa economic program; however, Vision Iowa declined due to insufficient proof of private investment commitments, and Lowrie departed in 2002, leaving the project with local race team owner Larry Clement. Clement also failed to satisfy Vision Iowa's demands for verified investor identities, ending this second attempt.
A third, successful bid came from the U.S. Motorsport Entertainment Corporation, led by CEO Paul Schlaack. Newton City Council unanimously approved the project on April 16, 2003, for a $30 million, 25,000-seat facility near Interstate 80. NASCAR driver Rusty Wallace was announced as the leading designer. Funding complications repeatedly delayed groundbreaking; the budget eventually rose to $70 million. A bipartisan ten-year sales tax relief bill — the first of its kind in Iowa — passed the state legislature and was signed by Governor Tom Vilsack in May 2005. Groundbreaking occurred on June 21, 2005. The project carried particular economic significance for Newton, whose largest employer, Maytag, was simultaneously laying off workers and would close its Newton factory in May 2006.
The speedway banks its front stretch at 10 degrees, back stretch at 4 degrees, and uses a progressive banking system from 12 to 14 degrees through the turns. NASCAR officially measures the track at 0.875 miles (1.408 km); IndyCar uses a slightly different measurement of 0.894 miles (1.439 km). The facility held 30,000 seats as of 2023 and featured luxury suites and infield amenities expanded in part through Hy-Vee corporate sponsorship for IndyCar events.
Iowa Speedway opened on September 15, 2006, with Woody Howard winning the inaugural race. The track's first Indy Racing League event was held in 2007, with Dario Franchitti winning. Annual NASCAR Nationwide Series and Craftsman Truck Series races were awarded for 2009. In 2009, U.S. Motorsport Entertainment transferred controlling interest to the Clement family of Newton.
By 2013 the facility was in financial distress, behind on payments. NASCAR purchased it for $10 million later that year to prevent closure, with Jimmy Small appointed track president. Brian France stated hopes for the track to host a Nationwide Series all-star event but ruled out a Cup Series date while the schedule was "full."
The COVID-19 pandemic disrupted operations in 2020, reducing races to minimal or no spectator capacity. IndyCar returned in 2022 with a doubleheader format that proved popular. In October 2023, reports emerged that NASCAR had chosen Iowa Speedway as a replacement for a failed attempt to add the Circuit Gilles Villeneuve to the 2024 Cup schedule. The addition was confirmed the following day, bringing Iowa its first NASCAR Cup Series races since the track's opening.
Iowa Speedway hosts annual NASCAR Cup and Xfinity Series races, branded as the Iowa Corn 350 and the Hy-Vee PERKS 250 respectively. IndyCar has raced at the facility since 2007 and returned to a doubleheader format from 2022 onwards. The ARCA Menards Series, the former Rolex Sports Car Series, Pro Mazda, and USF2000 have also competed at the venue. A roval layout incorporating the infield road course has been used for select events.
Iowa Speedway stands as an example of community-driven motorsport investment in a secondary market: a facility built to partially offset industrial job losses, saved from bankruptcy by its sanctioning body, and eventually elevated to host the flagship Cup Series. Its multi-configuration design — seven road layouts around an oval — reflects modern demands for venue versatility across different series.