Lawrence could be a landing spot for data centers as city code already allows them

The City of Lawrence, Kansas, has been identified as a potential location for "hyperscale" data centers due to its existing Land Development Code. A review by the Journal-World found that data centers are permitted by right in industrial zoning districts, meaning they do not require a special vote from the City Commission as long as they adhere to general district standards. Other zoning districts, such as mixed corridor and commercial center, would allow data centers with a special use permit, which would necessitate a City Commission vote. Despite allowing data centers, Lawrence's code does not include use-specific standards for them, leading staff to apply general permitting requirements that also apply to developments like distribution centers. This situation contrasts with Douglas County, where officials have spent nearly two years considering specific regulations for data centers, cryptocurrency mining, and battery energy storage facilities, though no formal rules have been adopted. Kansas Senate Bill 98, passed last year, provides a 20-year sales and use tax exemption for data centers investing at least $250 million and creating 20 jobs, making Kansas an attractive location for such developments. Aaron Bilyeu, chief development officer of Cloverleaf Infrastructure, which is proposing a data center near Tonganoxie, highlighted this incentive's importance. Lawrence Mayor Brad Finkeldei expressed concerns about large data centers' land, energy, and water consumption, suggesting projects might seek locations in the county or require annexation into the city, which would allow the city commissioners to fully vet such proposals. Susie Carson, Lawrence's director of economic development, confirmed that no formal development applications for data centers have been submitted to the city. While data centers could bring significant tax revenue without local property tax abatements, city officials acknowledge they may need to consider additional regulations in the future as technology evolves.