
Independence residents sue the city over massive tax breaks for an AI data center
News ClipKCUR·Independence, Jackson County, MO·3/12/2026
A group of Independence, Missouri residents is suing the city after it denied their petition to overturn $6.26 billion in tax breaks approved for an AI data center project. The residents argue the city charter gives them the right to force a citywide vote on the incentives, but the city claims the ordinance is not subject to a referendum. The opponents are continuing to gather signatures to try and put the issue on the ballot.
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Gov: Independence city council
The city of Independence, Missouri approved over $6 billion in tax breaks for Nebius, a company planning to build an "AI factory" data center in the city. After the city council passed the incentives, a group of residents organized to start a petition that could force a citywide vote on the tax breaks.
However, the city denied the residents' petition, saying it would violate the city charter. Three residents are now suing the city to force the referendum process to move forward. The opponents argue the charter preserves their right to seek a public vote, even on ordinances that take effect immediately, as long as they gather enough signatures.
The city claims the tax incentive ordinance is not subject to a referendum under the charter. But the residents leading the opposition say they are hopeful a judge will rule in their favor and allow the issue to go before voters. In the meantime, the opponents are continuing to gather signatures in hopes of putting the tax breaks up for a citywide vote if the court sides with them.