Kansas City's largest data center project gets $100B green light
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Port KC at Berkley Riverfront. Photo: Travis Meier/Axios
Port KC approved up to $100 billion in private funding for what could be Kansas City's largest data center project.
Why it matters: The enormous investment is the boldest regional tech bet yet as local leaders push to keep KC competitive in the industry.
Zoom in: "Project Kestrel" would build six data center buildings over the next 20 years on 379 acres just north of KCI, according to Port KC documents presented at a commissioners meeting on Monday.
- The land is owned by Hunt Midwest, a landholding company owned by the same family that owns the Chiefs.
Context: The hyperscale project is ten times larger than the recently approved "Project Mica," another data center complex planned for the Northland.
- Port KC chief executive Jon Stephens tells Axios that Kestrel's cost comes from significant infrastructure costs at the site — including roads, water and fiber — along with technological investment within the proposed buildings.
Follow the money: The port authority approved taxable revenue bonds, acting as a broker between private investors and Shenandoah Computing LLC, the developer.
- Stephens tells Axios that the developer is on the hook for repaying all the borrowed money within 35 years, and no public dollars are involved.
The big picture: Data center projects — and their costs — are blossoming across the Midwest, even though questions over energy usage remain unanswered.
- The rush to build data centers may be "irrational" and risky, according to tech investor Josh Wolfe. The Lux Capital co-founder and partner highlighted "speculative capital" and high energy demands as high-risk factors.
Yes, but: Evergy, which supplies energy to the Kansas City metro, often pushes back on project timelines that would strain the grid, Jason Klindt, senior director of external affairs, tells Axios.
- "This happens a lot," where a large project wants "more power sooner than we have the ability to provide," Klindt says.
- Evergy then provides a "stair-step" energy ramp proposal that it can meet while still providing its maximum output and a reserve surplus required by the Southwest Power Pool.
The other side: The Port KC vote passed on Monday with one "no" vote by commissioner Morgan Said, who tells Axios: "Data centers require astronomical amounts of electricity and water and create a minimal number of permanent jobs."
- "Incentives should target job creation and housing construction."
What they're saying: At the meeting, Stephens said each building could employ more than 200 people, including contracted security and trade workers.
- Stephens says the current or planned energy capacity covers the project's early phases.
- And he wants KC to remain competitive in attracting tech industry leaders.
What we're watching: The project's developer has committed to using 50% renewable energy.
- But, "How they get there, we don't know," Stephens said, as energy sourcing is likely to change as the phases progress.
Go deeper: OpenAI's data center ambitions collide with reality
