In recent years, Kansas City has emerged as a hub for innovative data center projects, many spearheaded by the Economic Development Corporation of Kansas City (EDCKC). These projects not only signify a pivotal shift towards digital transformation but also bring forth significant economic benefits and technological advancements to the region.
Why Data Centers Matter to Kansas City
- Job Creation: The establishment of data centers in Kansas City has led to a surge in job opportunities across various sectors. Kansas City is the third fastest-growing tech market in the U.S. and is among the top large metros for its number of tech jobs per capita.
- Economic Stimulus: The influx of data center projects has injected substantial capital into Kansas City’s economy. Beyond initial construction investments, ongoing operational expenditures contribute significantly to the local economy through taxes, utilities, and services. This economic stimulus extends to neighboring businesses, fostering a robust ecosystem of suppliers, contractors, and service providers.
- Technological Advancement: Data centers represent the backbone of modern technological infrastructure. By hosting vast amounts of digital information securely and efficiently, these facilities enable businesses to leverage cloud computing, big data analytics, and IoT innovations. Kansas City’s data center projects have positioned the region at the forefront of technological advancement, attracting tech startups and enterprises seeking a reliable digital infrastructure. In addition to being ranked one of the best startup cities in the U.S., the KC region has 102,000+ technology jobs and 3,900+ established tech firms. The pool of available talent within IT (67,800+) is strong due to the concentration of financial services, telecommunications, data processing, software and engineering firms in the Kansas City area.
Supporting Innovation and Growth
EDCKC’s proactive approach in fostering data center projects aligns with broader goals of enhancing regional competitiveness and sustainability. EDCKC can assist by:
- Helping businesses apply for the Chapter 100 program, which can provide real and personal property tax incentives for businesses investing in the city.
- Helping businesses expand or relocate within designated Enhanced Enterprise Zones (EEZs), which can include data centers, by providing state tax incentives and local property tax abatements.
- Providing site location assistance to help businesses find the right location.
- Helping businesses navigate the permitting and regulatory process.
- Bringing knowledge of Kansas City’s business ecosystem, ensuring projects align with market conditions and public priorities.
- Sharing experience navigating public and private funding mechanisms.
- Streamlining processes and ultimately providing a suite of services that ensures a project’s success, from site selection to financial structuring, workforce training to regulatory compliance.
EDCKC has successfully attracted major players, such as Meta and Google, in the tech industry to invest in Kansas City, Missouri. This strategic initiative not only supports existing businesses but also encourages new ventures to establish roots in the region, driving innovation across various sectors.
Notable Data Center Project Highlights
Edged Kansas City
- Edged is a vertically integrated global platform of on-demand data centers with operations designed to be carbon and water neutral. They opened a new data center in Kansas City on December 12, 2024.
- The facility represents a $143 million initial economic investment and is designed for high-density Artificial Intelligence (AI) workloads and optimized for energy and water efficiency.
- The Edged Kansas City data center uses zero water for cooling and 74% less energy compared to conventional facilities. It employs a ThermalWorks waterless cooling system, expected to save nearly 95 million gallons of water annually compared to traditional data centers. The facility achieves an average Power Usage Effectiveness (PUE) of 1.15 portfolio-wide. The Kansas City facility delivers 26 MW of critical capacity to the region and supports ultra-high densities of up to 200 kW per rack with plug-and-play liquid cooling integration.
- In March of 2024, Google announced a $1 billion investment in a new data center in the Northland area of Clay County, Missouri. This data center represents Google’s expansion in the Midwest.
- Additionally, the company announced its expansion of a skilled trade career development program in the region and a contribution to North Kansas City School District’s alternative education STEAM program. More than 65% of young people today will work in jobs that don’t yet exist.
- Google is working with Evergy to power the site and Ranger Power and D. E. Shaw Renewable Investments (DESRI) to bring 400 megawatts of new carbon-free energy to the grid as part of the company’s ambitious goal to run on 24/7 carbon-free energy.
Meta
- In 2022, Meta (formerly Facebook) unveiled plans for an $800 million data center near Interstate 435 and U.S. 169 Highway in Kansas City’s Northland. The first building of this project was completed in late 2023, marking a substantial investment in the region’s technological infrastructure.
Future Prospects and Sustainability
Looking ahead, Kansas City remains committed to expanding its data center footprint while prioritizing environmental sustainability. EDCKC continues to collaborate with stakeholders to implement energy-efficient technologies and renewable energy sources within these facilities. This commitment not only reduces environmental impact but also reinforces Kansas City’s reputation as a forward-thinking, sustainable tech hub.