KSHB 41 reporter Isabella Ledonne reports on stories in Overland Park, Johnson County and topics about government accountability. She's been reporting on data centers for more than a year in the ongoing series Data, Dollars and Demand. Share your story idea with Isabella.
—
The city of Independence approved plans for a Dutch company to build a hyperscale AI data center off Little Blue Parkway and Highway 78.
Council members approved the issuance of $150.6 billion in Taxable Industrial Development Revenue Bonds as a statewide incentive for the Dutch company Nebius to build a campus in Independence.
As a part of the approved package, Nebius will not pay real, personal property taxes or sales tax on the construction of the data center.
That's been a focal point of opposition for the dozens who have spoken out against Independence approving the project. Opponents have also been outspoken on the impact on energy and water rates.
Monday night's vote followed a nearly four hour public hearing with more than 60 people speaking in favor and against Nebius' AI data center.
Dozens of opponents made a final push to prevent the hyperscale, AI data center from calling Independence home.
"Please vote no," one resident said.
"It's more energy, more heat, more noise and a long term environmental impact in a valley where residents live today," resident Daniel Moorehead said.
Many people also voiced support for the AI data center, saying they believe it will bring needed economic development and growth to the northeast corridor of Independence.
"Failure to allow this project to proceed will keep our city in a deficit," resident Terry Martel said.
Labor and construction workers have also been in favor of the proposal as the project is expected to take several years to build.
"A project like this could have a lasting impact for generations from paychecks to pensions," resident Daniel Gallapo said.
The Independence AI data center will be getting $6.6 billions in tax breaks as a part of the approved package. Nebius is expected to make Payments in Lieu of Taxes (PILOT) in response to the tax abatement. Nebius is projected to pay $651 million in PILOT fees over the first 20 years in operations, providing more than $30 million annually to a general fund that averages roughly $85 million.
"This is not a fair exchange," one resident said in response to the tax abatements.
Among the list of concerns, impact to utility rates and bills, like energy and water, are top of mind.
"The infrastructure costs are enormous," resident Michael Paulson said.
As data centers continue to pop up in the state, Missouri lawmakers have filed two bills that would require data centers to pay their own utility rate to prevent that cost from falling on neighbors.
KSHB 41 New reporter Isabella Ledonne spoke with Missouri Attorney General Catherine Hanaway regarding data center development.
"We are watching it very closely to see if misrepresentations are being made to the public about how much water or how much energy will be consumed," Attorney General Hanaway said.
The Independence data center is expected to use 800 megawatts of energy. That's about three times more than what Independence currently generates.
In response to community concerns, Nebius has announced it will be sourcing its power from a separate power plant, funded by a private equity firm and not Independence or Independence Power and Light (IPL).
KSHB 41's Tod Palmer sat down with IPL's director, who explained how the project won't impact residential rates.
Nebius also stated it will use a closed-loop water system, which utilizes significantly less water than some of the other hyperscale data centers in the Kansas City metro.
Other data centers in the metro, like Meta's and Google's, rely on Evergy's infrastructure and using millions of gallons of water daily from the city's supply.
"Do you think our current laws in Missouri can handle this data center boom that we're seeing, specifically in regards to consumer protection with utility rates?" Isabella Ledonne asked Attorney General Hanaway.
"I think there's room for improvement," Attorney General Hanaway responded.
Nebius released a statement following the Independence City Council vote.
“We appreciate the City Council’s vote tonight and are grateful for the backing from education, labor, and business leaders, as well as the broader Independence community," John Sutter, Nebius spokesperson said. "Our AI factory is purpose built to fit in - from design to construction to operation, we’re focused on being a good community partner and are excited to move forward with our project that will deliver broad economic, education, and community benefits.”
Nebius' AI data center is the eighth confirmed hyperscale data center in the Kansas City metro. You can find more of KSHB 41's coverage of data centers here.
—
