City of Osawatomie, developer announce plan to move forward with data center
The City of Osawatomie, Kansas, and Alcove Development announced plans to proceed with "Project Catalyst," a multi-phase, 500+ MW data center campus, despite significant community opposition. Developers highlight economic benefits and an air-cooled design to minimize water use, while residents express environmental concerns and have filed petitions and called for a moratorium. The project is expected to undergo a special use permit process.
The City of Osawatomie, Kansas, along with Lawrence-based real estate firm Alcove Development, has officially announced its intention to proceed with "Project Catalyst," a multi-phase, 500-plus megawatt data center campus. The project is projected to bring billions in investment, generate over $30 million annually for the city, and more than $10 million in property tax revenues for Miami County and the Osawatomie School District. Developers, including GW Weld from Alcove Development, emphasize the project's potential to reshape the community's economic future and create hundreds of construction jobs, followed by skilled permanent positions.
City Manager Bret Glendening addressed public concerns, acknowledging "misinformation" but affirming the city's commitment to controlling potential negative impacts through the special use permit process and state/federal regulations. He highlighted the need to rebalance Osawatomie's property tax base, which currently relies heavily on residential properties, and expressed confidence that the Mayor and City Council aim to reduce taxes for residents.
Alcove Development and the city assured that Project Catalyst would utilize an innovative fully air-cooled design, significantly reducing water consumption compared to older evaporative cooling methods. They also stated that all necessary new transmission infrastructure, substation upgrades, and generation capacity would be entirely project-funded, preventing costs from being passed to existing Osawatomie residents or Evergy customers. Project leaders clarified that Kansas law and the Kansas Corporation Commission regulate utility rates to prevent cross-subsidization.
Despite these assurances, the project faces strong community opposition. Residents have actively protested, expressed concerns about environmental impact and disruption to the quiet community, filed petitions, and called for a moratorium. A large group attended a recent city council meeting to voice their disapproval, indicating an ongoing and active opposition effort.