Kansas town used to be a railroad hub. Now leaders hope data center is next boon
Osawatomie, Kansas officials are proposing a multibillion-dollar hyperscale data center project, Project Catalyst, hoping it will revitalize the town and potentially eliminate property taxes. However, residents are actively opposing the plan, raising concerns about electricity usage, environmental impact, noise, and safety, and have filed a petition to ban data centers. An application for zoning modifications for the project is expected soon.
City officials in Osawatomie, Kansas, led by City Manager Bret Glendening, are actively promoting "Project Catalyst," a multibillion-dollar hyperscale data center development, as a crucial economic boost for the former railroad hub. The project, planned for 283 acres in Miami County, is touted to generate over $30 million annually for the city, potentially eliminating residential property taxes and providing much-needed revenue for the struggling town.
Alcove Development, based in Lawrence, and Atlanta-based MDH Partners are spearheading the development, intending to construct a shell facility for a future end-user. While discussions for the multi-phase project began in 2023, a predevelopment agreement was finalized in early 2026. The land is currently being surveyed, and an application for zoning modifications is anticipated within the next month, with construction slated to commence in 2028.
Despite the promising financial projections, the proposal faces significant opposition from residents. Individuals like Keira Shipley-Welter, a former Osawatomie resident, and John Fletcher, a volunteer for the Osawatomie Museum Foundation, express skepticism regarding the project's long-term benefits and its suitability for the town. Concerns include potential environmental impacts, noise pollution, high electricity consumption, and safety hazards. Opponents have initiated a petition to establish a city ordinance to ban data centers altogether and densely packed a recent four-hour public meeting to voice their numerous objections, arguing that the economic benefits do not justify the projected costs and changes to the community.