Kansas City, MO, January 12, 2026
Patmos Hosting Inc. has secured a $100 million C-PACE loan to transform the former Kansas City Star building into a high-tech AI data center. This project promotes economic growth and showcases Kansas City’s emerging tech sector, creating a multi-use facility designed to attract innovation. With a total investment projected at $1 billion, the AI Campus is set to enhance local infrastructure, support high-density computing, and foster entrepreneurial spirit in the region.
Kansas City, MO
KC’s Innovation Drive: Patmos Secures $100 Million for AI Data Center
A significant private investment is poised to further establish Kansas City as a burgeoning technology hub, as Patmos Hosting Inc. secures a substantial C-PACE loan. This strategic financing will accelerate the completion of a state-of-the-art AI data center within the revitalized former Kansas City Star building, showcasing entrepreneurial vision and the power of innovative capital structures to fuel local economic growth. This development underscores the city’s appeal to forward-thinking businesses and highlights the dynamic spirit of Kansas City MO business.
The transformation of an iconic downtown landmark into a cutting-edge facility for artificial intelligence infrastructure exemplifies how ingenuity and private capital can drive urban renewal and create new opportunities. This initiative is a testament to the proactive approach taken by businesses committed to pushing technological boundaries and contributing to the region’s prosperity. It reinforces Kansas City’s reputation as a welcoming environment for growth and innovation, attracting key players in the national tech landscape.
A New Chapter for an Iconic Landmark
Patmos Hosting Inc., a provider of internet infrastructure, data center, and hosting services, is spearheading the conversion of the former Kansas City Star building, located at 1601 McGee Street in downtown Kansas City, into a multi-use AI Campus. This 421,112-square-foot, four-story facility is designed to provide 35 megawatts (MW) of power, specifically catering to high-density GPU, High-Performance Computing (HPC), and artificial intelligence infrastructure companies. The project represents a substantial Kansas City small business achievement, with an expected total investment of $1 billion as it progresses.
The decision to repurpose an existing urban structure, often referred to as a brownfield site, rather than constructing a new facility, demonstrates an innovative and efficient approach to development. This strategy allows for faster speed-to-market by leveraging existing robust infrastructure, including redundant power feeds and a district chilled water supply, which are crucial for the demanding needs of AI data centers. Patmos initially demonstrated rapid deployment by building out the first 5MW in under 90 days, followed by another 7MW in the subsequent 90 days. The next phase of infrastructure upgrades is anticipated to conclude in Spring 2026, with the overall project projected for completion in March 2026.
Understanding C-PACE Financing and Its Benefits
The $100 million C-PACE loan secured by Patmos Hosting Inc. from PACE Loan Group is a pivotal element in this development. C-PACE, or Commercial Property Assessed Clean Energy, is an innovative financing mechanism that enables commercial property owners to fund energy-efficient, renewable energy, and water conservation projects. This particular loan stands as the largest C-PACE project in Missouri to date by financing amount.
The C-PACE program operates by allowing property owners to repay the financing through a non-accelerating property tax assessment, which is typically spread out over an extended period, often up to 30 years. A key feature is that the assessment attaches to the property itself, rather than the individual owner, and can transfer to a new owner upon sale, ensuring long-term financial stability for the project. The proceeds from this loan will be allocated to critical energy-efficient infrastructure improvements, including equipment, HVAC systems, and plumbing, vital for managing the data center’s substantial cooling and electrical load.
Missouri’s C-PACE program, managed by Show Me PACE, is available statewide, including Jackson County, and is overseen by the Show Me PACE Clean Energy Development Board (CEDB). Established in 2010 and revised in 2021, the program has facilitated over $329 million in statewide improvements, demonstrating its effectiveness in promoting sustainable development across Missouri. This private capital solution helps fill financing gaps and reduces upfront costs for property owners, fostering greater investment in modern, efficient infrastructure.
Kansas City’s Growing Tech Sector
The Patmos AI Campus arrives at a time when Kansas City’s technology sector is experiencing robust growth and increased prominence. The Kansas City metropolitan area is recognized as Missouri’s most concentrated tech employment center, having seen an approximate 16% growth in tech jobs since the pandemic. The region’s share of the labor market in technology is about 18% higher than the national average.
The tech industry significantly contributes to the local economy, driving 9% of Kansas City’s total economic impact. This dynamic environment is further highlighted by the fact that Kansas City is leading in artificial intelligence investments, surpassing the national average. In 2023, AI and machine learning comprised 31% of tech investments in Kansas City, compared to 14% nationally, indicating a strong local focus on cutting-edge technologies. With over 75,000 tech professionals and tech wages outpacing statewide averages, Midlands economic growth in the tech sector is evident.
Fostering Entrepreneurial Spirit and Community Engagement
Beyond its role as a data center, the Patmos AI Campus aims to be a multi-tenant technology hub, converting nearly 150,000 square feet into co-working and event spaces. This initiative is designed to cultivate a vibrant ecosystem for technology professionals and organizations in downtown Kansas City, contributing to the revitalization of the area. This approach aligns with the entrepreneurial spirit that defines Missouri MO entrepreneurs, demonstrating a commitment to not only technological advancement but also community development.
The project leverages Kansas City’s strategic advantages, including a low natural disaster risk, access to affordable green energy, and a robust fiber optic infrastructure. These factors, combined with a competitive cost of living, make Kansas City an attractive destination for tech companies and professionals alike. By offering flexible and rapid deployment options for high-density computing, Patmos is positioning Kansas City to capture a growing share of nationwide demand for AI infrastructure.
Looking Ahead: A Catalyst for Future Growth
The investment in the Patmos AI Campus through the C-PACE loan is a significant indicator of Kansas City’s trajectory as a leading tech hub. By facilitating private investment in energy-efficient, high-tech infrastructure, this project not only addresses the growing demand for AI computing power but also supports the city’s economic development goals. The adaptive reuse of a historic building showcases innovation in urban planning and sustainable development, setting a precedent for future projects. This venture illustrates how local leadership and private sector initiative can combine to strengthen the local economy, create jobs, and position Kansas City at the forefront of the technological revolution.
Readers are encouraged to engage with and support the innovative businesses that are shaping Kansas City’s future. Staying informed about these developments is key to understanding the evolving landscape of Kansas City MO business and ensuring continued prosperity for the region.
Frequently Asked Questions
What is the Patmos AI Campus in Kansas City?
The Patmos AI Campus is a state-of-the-art multi-use artificial intelligence data center being developed in the former Kansas City Star building at 1601 McGee Street in downtown Kansas City. It is designed to provide 35 megawatts (MW) of power for high-density GPU, HPC, and AI infrastructure companies, and will also feature co-working and event spaces.
What is a C-PACE loan?
A C-PACE (Commercial Property Assessed Clean Energy) loan is a financing mechanism that enables commercial property owners to fund energy-efficient, renewable energy, and water conservation projects. Repayment is made through a non-accelerating property tax assessment over a long term, and the assessment attaches to the property, not the owner.
How much was the C-PACE loan Patmos secured for the Kansas City project?
Patmos Hosting Inc. secured a $100 million C-PACE loan from PACE Loan Group.
What will the $100 million C-PACE loan be used for?
The $100 million C-PACE loan will fund energy-efficient infrastructure improvements, including equipment, HVAC systems, and plumbing, to support the data center’s cooling and electrical load as part of the continued expansion of the Patmos AI Campus.
Is this the largest C-PACE loan in Missouri?
Yes, the $100 million C-PACE loan secured by Patmos is the largest C-PACE loan in Missouri to date by financing amount.
What is the expected completion date for the Patmos AI Campus?
The next phase of infrastructure upgrades is expected to be completed in Spring 2026, with the overall project anticipated for completion in March 2026.
How does the Patmos project contribute to Kansas City’s economic growth?
The Patmos AI Campus project contributes to Kansas City’s economic growth by creating a technology hub, fostering job creation in the tech sector, and attracting further investment. The tech industry drives 9% of Kansas City’s economy, and AI investments in the city surpass the national average.
Key Features of the Patmos AI Campus Project
| Feature | Detail | Scope |
|---|---|---|
| Project Location | Former Kansas City Star building, 1601 McGee Street, downtown Kansas City, MO | Local |
| Building Size | 421,112-square-foot, four-story facility | Local |
| Primary Function | State-of-the-art multi-use AI Campus for high-density GPU, HPC, and AI infrastructure | Local |
| Power Capacity | Designed for 35 megawatts (MW) of power | Local |
| C-PACE Loan Amount | $100 million | Local |
| C-PACE Lender | PACE Loan Group | Nationwide |
| Loan Significance | Largest C-PACE loan in Missouri to date by financing amount | State-level |
| Use of Loan Funds | Energy-efficient infrastructure improvements (equipment, HVAC, plumbing) | Local |
| Project Completion | Expected March 2026 for overall project, Spring 2026 for next phase of infrastructure upgrades | Local |
| Additional Facilities | Nearly 150,000 sq ft for multi-tenant technology hub, co-working, and event space | Local |
| Development Strategy | Adaptive reuse/retrofit of existing urban building (brownfield site) | Local |
| Missouri C-PACE Program | Managed by Show Me PACE, available statewide (Missouri) | State-level |
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Author: STAFF HERE KANSAS CITY WRITER
The KANSAS CITY STAFF WRITER represents the experienced team at HEREKansasCity.com, your go-to source for actionable local news and information in Kansas City, Jackson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as American Royal World Series of Barbecue, Dia De Los Muertos, and Planet Anime Kansas City. Our coverage extends to key organizations like the Greater Kansas City Chamber of Commerce and United Way of Greater Kansas City, plus leading businesses in healthcare, finance, and entertainment that power the local economy such as Children's Mercy Hospital, Government Employees Health Association, and AMC Entertainment. As part of the broader HERE network, including HEREStLouis.com, we provide comprehensive, credible insights into Missouri's dynamic landscape.
