Port KC delays vote on data center as opposition to the facility intensifies
Organizers opposed to data center expansion in the Kansas City area continue to speak out after a local agency delayed a vote over incentives for one proposed project in the Northland.
The Port Authority of Kansas City, the state-created agency that offers financial incentives for housing and industrial projects within city limits, was expected to consider advancing a financing plan for “Project Blitz,” a data center project on North Airworld Drive near the airport tied to Lambda, an AI infrastructure company based in California.
But the item was pulled shortly before Port KC’s board was due to vote on Thursday at the developer’s request, officials said.
Port KC President and CEO Jon Stephens described Project Blitz earlier this month as an “AI factory and research facility” that would be much different from a traditional data center.
Last fall, Lambda announced plans to remake an existing data center facility, built in 2009, into a $500 million “AI factory” that would launch early this year with 24 megawatts of capacity and the possibility to scale up to 100 megawatts in the future.
Lambda did not respond to requests for comment from The Star about the status of the project, but city permit records show work has been ongoing at the site. A state document, dated April 15, indicates that the site’s contractor was “close to turning Blitz over to the owners” and that commissioning could start June 1.
Organizers, residents speak out against proposal
The delay did not stop organizers and residents from speaking against the proposal at the Port KC board meeting and expressing concerns about tax breaks, environmental impacts and other issues.
That followed social media posts from the group KC Data Center Watchdog drawing attention to the vote.
“The main message that we came here to say, that I came here to say, is that we don’t want any more data centers,” organizer Cody Boston said. “We don’t want the ones that you guys have already allowed to show up. No one across the country is interested in seeing these show up in their communities, pollute the air, the noise around them, pollute the water, and to be leeches upon the power grid.”
Organizing in opposition to data centers in the Kansas City region has grown over the past year-plus, and so have efforts by various public and company officials to assuage concerns about electric bills, the power grid, water use, companies paying their fair share and other issues as the industry has evolved.
What about Evergy’s power supply?
As for Project Blitz, opponents drew attention to the April 15 letter from a state Department of Natural Resources official that says “an issue has come up with the utility power supply” and that “Evergy will not have the full power supply available on June 1,” when commissioning could begin.
Full power supply would be ready in the late summer, the letter says. According to the April letter, the construction company determined it would need to rent temporary, portable engines to support the facility as it prepared to turn Blitz over to the owners.
Asked about the letter, Evergy spokesperson Gina Penzig said Thursday: “Evergy has been working closely with the customer on supplying power to this site for months. The site has enough power available today in order for the facility to fully operate. Evergy is able to meet the customer’s power needs and timeline.”
Sales tax breaks for the Lambda project
The Lambda project is expected to receive sales tax breaks through the state. The exact details of proposed tax breaks through Port KC were not immediately available, given the delayed discussion.
Data center incentive deals in the region have typically included sales tax exemptions and temporary property tax reductions; projects have been expected to still generate large amounts of new revenue for taxing bodies, even with tax breaks.
Port KC could bring the item back up for discussion at a later meeting. The board’s next meeting is expected to be in June.