Kansas City: Proposed 20-story data center faces opposition, questions of viability
A proposal to demolish a historic building in downtown Kansas City for a 20-story data center is facing significant public opposition and questions about its financial viability. The developer, Revitalization Unlimited, is considering the project despite new city zoning restrictions and high utility demands, with some suspecting the motive is tax breaks. The plan awaits approval from the city's Planning Commission.
A proposal by Miami-based private equity fund Revitalization Unlimited to construct a 20-story data center in downtown Kansas City has ignited controversy. The plan involves demolishing the historic Western Newspaper Union building, which was constructed in 1900 and listed on the National Register of Historic Places in 2007.
The proposed data center is projected to be massive, featuring 5,000 square feet of public retail space on the ground floor and 19 floors dedicated to data center operations. Architect Jeff Byrd indicated that the facility would generate some of its own power using natural gas fuel cells but would not impact nearby residents' utility costs. However, the project is expected to place immense demand on local utilities, consuming an estimated 140 million gallons of water annually.
The project has met significant backlash from local residents and community groups, who voiced their concerns at a recent meeting. Revitalization Unlimited CEO Steve Austin argued that the data center could generate up to $25 million in annual tax revenue for Kansas City. However, Austin also admitted uncertainty regarding the project's financial viability, particularly concerning potential city incentives, stating, "We have no idea if this project's even financeable."
The development awaits approval from Kansas City's Planning Commission, though the city recently adopted more restrictive zoning regulations for data centers. The Downtown Neighborhood Association is questioning Revitalization Unlimited's true intentions, suggesting the company may be prioritizing tax breaks through a historic preservation easement (HPE) placed on the building last year, which allows for charitable deductions based on lost redevelopment opportunities.