Independence subsidies would save AI company $6.2B. What city, schools would get

A plan for a massive new data center in Independence could mean both eye-popping tax breaks and a flood of new revenue for the city’s coffers and local schools.

Nebius, a Dutch company that offers artificial intelligence services, has proposed building a 400-acre, 2.1 million-square foot data center campus at 501 North Bly Rd., on undeveloped land in northeast Independence.

The $150 billion project would include up to four buildings and take three to five years. A venture called Independence Power Partners will lead bringing the old Blue Valley Power Plant back online and expanding it to power the data center.

Nebius will be paying the full cost for its own electricity, and existing customers will not be affected under the arrangement, the city has said.

For Nebius’ data center, the City Council is expected to consider on Monday a financing plan including $6.2 billion in tax breaks to make the project a reality. Currently, the empty property generates under $3,000 a year in tax revenue, according to city documents.

That number would increase exponentially with a data center, even with proposed tax breaks.

Under the financing plan, the city would hold ownership of the property and lease it back to the developer. The government doesn’t have to pay property taxes, so the developer would instead agree to make “payments in lieu of taxes,” or PILOTs, which will go to government agencies like the local school districts, libraries and the county.

With the data center development, the projected PILOT payments would reach nearly $651.5 million to taxing bodies over 20 years, through 2046.

That averages out to $32.5 million per year that would go to Independence and Fort Osage school districts, the library, Jackson County and other public agencies..

For Independence schools in particular, whose officials have thrown their support behind the plan, that means over $463 million in new money over the two decades, or an average of $23.2 million per year, records show.

The city would also issue up to $150.6 billion in bonds to support the project’s costs. Bonds are a financing tool, tied to revenues from the project, and they are not the city’s debt or obligation to pay, according to city documents. They are part of a technical process that allows for tax breaks and incentives.

The bond and tax break process is outlined in Missouri law and is a tool available to cities similar to what the Port Authority of Kansas City (Port KC) does for big development projects.

Those tax breaks for the Nebius data center are quite large, city records show: 98% real property tax breaks and 90% on personal property, including the specialized equipment.

Without any tax breaks, Nebius would owe over $6.9 billion in property taxes during the 20 years, or $345.86 million per year.

That’s a savings of more than $6.2 billion — which is in addition to more than $330 million in sales tax breaks on construction materials that the plan could include.

“If abatements are not received, it is unlikely the project would proceed at the same level of investment, if at all,” Mark Coulter, an attorney representing Nebius, told the council this week.

The city has additional protections and can strip incentives if Nebius doesn’t hold up its end of the deal.

Beyond the tens of millions per year in new revenue across public agencies from the data center deal, the city itself expects $35-55 million per year in new money for its general fund, or money for everyday city services.

That extra money would come from a PILOT arrangement with Independence Power & Light tied to electricity that the data center would use to operate.

The power company will also see net revenue to its enterprise fund to increase by about $35-55 million per year.

School and union officials have signaled their support for the data center for its economic impact, while many residents have organized against it with concerns about the environment, level of tax breaks, transparency and more.

This story was originally published February 26, 2026 at 6:07 AM.