Judge to decide if Independence push to revoke data center tax breaks is allowed

An ongoing legal battle in Independence, Missouri, will determine whether local residents can move forward with a referendum to revoke over $6 billion in tax breaks granted to a massive artificial intelligence data center project. A Jackson County judge will rule by week's end on the legality of a public vote to overturn the tax abatements, which were approved by the Independence City Council earlier this month for a proposed $150 billion data center by Dutch company Nebius. Opponents, including grassroots organizers Rachel Gonzalez, Misty Vaughn, and Kharma Magers, have sued the city and city clerk Suzanne Holland after officials argued that the petition process for a referendum was not allowed under the city charter. The city's legal team, led by attorney Chuck Hatfield, contends that the tax breaks are part of city contracts that went into effect immediately and are therefore exempt from referendum. They also argue that allowing such a referendum would set a disruptive precedent for future development projects and contracts. Conversely, the organizers' legal team, represented by David Whipple, asserts that the city charter contains exceptions allowing for a vote on these tax breaks, especially given the project's immense scale and impact. They highlight the significant citizen effort involved in collecting signatures, demonstrating strong public interest. Organizers have already gathered approximately 2,200 signatures and are pushing to collect thousands more by a court-extended deadline, in anticipation of a favorable ruling. The proposed 400-acre Nebius data center, planned as the company's U.S. flagship, is expected to be powered largely by an upgraded Blue Valley Power Plant. While proponents laud its potential to generate over $650 million for local taxing jurisdictions over two decades, opponents criticize the 90% to 98% tax breaks and the project's environmental implications. The judge's decision is highly anticipated, as it will significantly impact the future of the project and local citizen power in Independence.