Kansas City, MO, January 13, 2026
Nebius is set to impact Kansas City’s economy significantly with plans for an 800 MW AI data center, projected to attract investment and create thousands of jobs. The ambitious project reflects the city’s rising status as a tech hub. With construction starting in 2026, it promises to bolster local workforce and tax revenues while addressing community concerns regarding utilities and environmental factors.
Kansas City, MO
Kansas City’s Digital Leap: Nebius Data Center Fuels Economic Excitement
Kansas City’s dynamic business landscape is abuzz with the recent news of Nebius (NBIS) stock climbing significantly, propelled by reports of an ambitious 800-megawatt (MW) AI data center planned for the area. This development underscores the growing role of technological infrastructure in shaping local economies and highlights the entrepreneurial spirit driving innovation in the heartland.
The reported plans for an expansive AI data center campus near Kansas City signal a substantial private investment in the region’s digital future, which could translate into significant economic growth and job creation. As local entrepreneurs continue to push the boundaries of technology, such projects are vital in solidifying Kansas City’s position as a burgeoning tech hub, attracting further investment and talent.
Nebius’s Ambitious Kansas City Data Center Plans Unveiled
Nebius, an AI infrastructure company, saw its shares jump approximately 10% during Monday’s afternoon session following reports of an 800 MW AI data center campus being planned for the Kansas City area. This substantial project is envisioned to include up to 10 buildings across about 400 acres, encompassing approximately 2.5 million square feet of development. The estimated investment in land and site/building improvements alone is projected to be around $6.6 billion. Construction is anticipated to commence in early 2026 and unfold in phases over three to five years.
The chosen site for this significant undertaking was acquired by Nebius from private property owners through a voluntary real estate transaction. Notably, the location is already zoned for industrial and business park uses, which means data centers are an allowed use under the existing zoning, circumventing the need for rezoning. However, the project remains subject to all applicable development standards, site plan review, and building code requirements. A critical component of this large-scale operation is power, with the 800 MW capacity slated to be supplied by a new, privately financed facility. This facility will be developed by Independence Power Partners (IPP) at the site of the City’s retired Blue Valley Power Plant. The power plant’s construction is also planned in phases, with the first 250 MW expected by October 2027 and an expansion up to approximately 1100 MW capacity by December 2029.
This is not Nebius’s first foray into the Kansas City market. The company, a Dutch AI operator and technology hub that refocused on AI in July 2024, launched its first GPU cluster in the US in Kansas City, MO, in the first quarter of 2025. This initial facility, located at 1601 McGee St., was established in partnership with Patmos Hosting, Inc., which repurposed the former Kansas City Star printing press building into an operational data center. This existing colocation can be expanded from an initial 5 MW to 40 MW, potentially housing about 35,000 GPUs at full capacity.
Kansas City’s Expanding Tech Footprint and Economic Impact
Kansas City has steadily grown into a significant technology hub, with the metro area standing as the most concentrated tech employment center in Missouri, exhibiting substantial growth since the pandemic. Tech jobs within the Kansas City Metropolitan Statistical Area (MSA) have increased by approximately 16% since the pandemic, specifically between 2021 and 2023. The region’s proportion of tech jobs in its labor market is about 18% higher than the national average. Investment in artificial intelligence (AI) and machine learning has become a notable driver, with Kansas City leading in AI investments nationally. Local tech companies invested over $7.8 million in AI and machine learning technologies in 2023, representing 31% of tech investments in Kansas City compared to the national average of 14%.
The tech industry in Kansas City employs more than 77,000 skilled professionals, contributing 9% to the region’s total economic output and surpassing the economic impact of tech in larger metros such as Chicago and Houston. The city’s competitive advantage is further bolstered by a lower cost of living combined with a high density of tech workers. Data centers play a critical role in fostering this growth by creating jobs, attracting local economic investment, and enhancing digital readiness. During their construction phases, data centers typically employ nearly 1,700 construction workers, providing immediate economic stimulus. Beyond construction, these facilities can offer high-paying permanent roles, including data center engineers and engineering operations managers. Moreover, data centers significantly boost local tax revenues through real and personal property taxes. For example, Loudoun County, Virginia, a prominent data center hub, generated over $600 million in tax revenue from its data centers in 2022. Nebius has also stated intentions to support the community through K-12 STEM advancement, robotics programs, and AI literacy initiatives.
Navigating Community Perspectives and Regulatory Considerations
While the economic promise of large-scale data center projects is considerable, they also bring forth community discussions regarding their broader impact. Concerns frequently raised by residents in areas considering such developments include potential increases in utility costs, significant water and energy consumption, and environmental effects. Data centers are known for requiring substantial amounts of water for cooling and matching the electricity usage of small cities. There have been discussions across Missouri regarding electric utilities advocating for delaying the retirement of older power plants or building new ones to meet future data center energy demands, with the potential for these costs to be passed on to consumers.
In Independence, Missouri, where part of the Nebius project is located, the City has addressed some of these concerns by stating that Nebius will bear the full cost of its electricity, thereby ensuring that existing Independence Power & Light (IPL) customers are not impacted and their rates are protected. The City and IPL will also incur no debt from the project. Furthermore, the City of Independence has indicated that noise impacts from the data center will be evaluated as part of the site planning and permitting process, with equipment typically enclosed or screened to mitigate noise.
However, consumer advocates in Missouri have voiced concerns that new state rules, intended to protect residents from data center costs, may not adequately shield them from the risk of paying substantial annual increases (potentially over $500) on their power bills if a data center project fails or does not materialize as planned. This highlights the importance of robust policy frameworks that balance economic development with consumer protection. The ongoing dialogue, including public input on new zoning standards for data centers in Kansas City, MO, indicates a proactive approach to addressing these large-scale developments. These discussions underscore the need for transparency and community involvement to ensure that economic growth is both sustainable and beneficial for all residents.
Looking Ahead: Sustaining Kansas City’s Innovation Momentum
The reported 800 MW AI data center plan by Nebius represents a significant vote of confidence in Kansas City’s future as a technology and business hub. As Kansas City continues to attract substantial private investment and foster an environment ripe for entrepreneurial innovation, judicious planning and community engagement will be paramount. By carefully navigating regulatory considerations and proactively addressing public concerns, the region can ensure that this growth benefits all its citizens, solidifying Kansas City’s position as a leader in Midlands economic growth. Investing in cutting-edge infrastructure like advanced data centers not only creates jobs and generates tax revenue but also enhances the region’s overall digital readiness, laying a strong foundation for future technological advancements and economic prosperity. Sustaining this momentum requires continued collaboration among businesses, policymakers, and communities to cultivate an environment where opportunity thrives for all Kansas City small businesses and Missouri MO entrepreneurs.
Frequently Asked Questions About the Nebius Kansas City Data Center
What is the planned capacity of the Nebius data center in the Kansas City area?
A report detailed plans for an 800-megawatt AI data center campus close to Kansas City.
What is the estimated investment for the Nebius data center project?
The project involves an estimated $6.6 billion in land and site/building improvements.
When is construction anticipated to begin for the Nebius data center?
Construction is anticipated to begin in early 2026.
Will the Nebius data center project impact electricity rates for existing Independence Power & Light (IPL) customers?
No, the project is structured so that Nebius pays the full cost of its electricity, and existing Independence Power & Light (IPL) customers are not impacted.
Is the Nebius data center project located in an area already zoned for such a use?
Yes, the project site is already zoned for industrial and business park uses, and data centers are an allowed use under the site’s existing zoning, meaning no rezoning is required.
Key Features of the Nebius Kansas City-Area Data Center Plan
| Feature | Details |
|---|---|
| Planned Capacity | 800 MW AI data center campus |
| Estimated Investment | $6.6 billion in land and site/building improvements |
| Campus Size | Up to 10 buildings on approximately 400 acres, 2.5 million square feet |
| Construction Timeline | Phased construction over 3–5 years, anticipated to begin early 2026 |
| Power Supply | New, privately financed facility by Independence Power Partners (IPP) at Blue Valley Power Plant site |
| Zoning Status | Site already zoned for industrial and business park uses; data centers allowed, no rezoning required |
| Community Benefit Initiatives | Plans to assist with K-12 STEM advancement, sponsor robotics, foster AI literacy programs |
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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.
