New Kansas law opens door to more data centers, including another one near KC

A new Kansas law incentivizing data center development with sales tax breaks has spurred interest in the state, with Houston-based real estate firm Cloverleaf Infrastructure presenting conceptual plans for "Project Bluestem." This large hyperscale data center, potentially offering at least 600 megawatts of capacity, is eyed for the Tonganoxie Business Park in Leavenworth County. While formal plans are pending, Cloverleaf specializes in preparing sites for major tech companies, with officials from the state's commerce department noting Kansas's late entry into the data center growth pattern. The influx of data center proposals in the broader Kansas City metropolitan area, including Project Bluestem, has ignited local opposition. Residents and groups, such as the "Tongie Data Center WatchDog Group," express concerns about environmental impacts, property values, health, utility bills, and the intensive use of energy and water. Jim Karleskint, a former state legislator, criticized the potential for "imbalanced development" that shifts costs onto residents with limited long-term benefits. Utility provider Evergy is actively working to address the significant power demands of data centers. Executive Vice President Chuck Caisley acknowledged that such developments could raise rates in other regions but highlighted Evergy's proactive measures, including a regulatory-approved plan for large data centers (75+ megawatts) that charges higher rates and requires collateral. Evergy suggests that data center investments in infrastructure could help flatten residential rate increases, with Project Bluestem expected to fund its own transmission upgrades and generation facilities, and utilize a closed-loop water cooling system. Beyond Project Bluestem, the article notes other significant data center activities in the Kansas City metro. Metrobloks plans a $1.4 billion facility in Liberty, Missouri. The Independence City Council approved financing for a Nebius data center, which includes reactivating an old power plant, though residents have filed a lawsuit to allow a public referendum on the plan. Additionally, Revitalization Unlimited is considering a high-rise data center in downtown Kansas City, Missouri.