A rural Kansas town considers data center as a big swing to revitalize its economy
Osawatomie, Kansas, officials are evaluating a proposal for a large data center aimed at revitalizing the town's eroding tax base. The project, financed by MDH Partners, faces significant opposition from residents concerned about water usage, electricity strain, noise, and potential tax breaks. The city's planning commission is currently reviewing the proposal before it goes to the city council.
Osawatomie, Kansas, a small rural town struggling with a hollowed-out tax base, is considering a massive data center proposal that city officials hope will revitalize its economy. City Manager Bret Glendening highlighted the potential for substantial tax revenue, with an estimated $30 million annually for the city, $10 million for the school district, and $10 million for the county, potentially allowing for property tax cuts. MDH Partners Vice President Charles Tinsley, whose firm is financing the proposal, emphasized that the data center would not demand extensive tax breaks or municipal services.
Despite the economic appeal, the project faces strong resident opposition. "NO DATA CENTERS" signs have appeared, and a recent city council meeting saw emotional testimony from residents like Lee Brewer, who was ejected for his protests. Concerns include the data center's strain on the electrical grid, high water consumption (estimated at 80,000 gallons per day from the city treatment plant), noise pollution, and potential impacts on local liberties, including the use of data by surveillance technologies. Residents like Michael Hursey express skepticism about the promised benefits, believing "billionaires know how to play these country towns."
The proposed development, envisioned as a gradual buildout over six years with seven buildings covering up to 200 football fields, would employ about 90 people. The developers, who have not yet secured a specific operating company, plan to attract tech firms once land and permits are secured. The Osawatomie City Planning Commission is currently reviewing the proposal, with a recommendation to the City Council pending. The outcome of the debate remains uncertain as the town weighs economic opportunity against community concerns.