Developer of $3 billion De Soto data center pledges $250K ‘community investment’
Shortly after a national data center developer withdrew its proposal in the face of vehement resident opposition in Gardner, the same company announced a plan for how it intends to make a positive impact in nearby De Soto, where it is building a four-phase, $3.1 billion data center campus.
In August, the De Soto City Council approved a development agreement for San Francisco-based Beale Infrastructure outlining its intent to grant up to $50 billion in bonds, which Beale would be on the hook for, to support the project on the northwest corner of 103rd Street and Edgerton Road in the Flint Commerce Center.
The bonds make it possible for the city to offer robust property tax exemptions for 10 years on each new building, and to exempt sales taxes on all construction materials. The company would make payments in lieu of taxes, or PILOT, for those 10 years per building.
This week, Beale announced that as part of the project, it will contribute $250,000 to local nonprofits, including the De Soto Kansas Food Pantry, the USD 232 Education Foundation and De Soto Days.
“We are committed to being a catalyst for growth, beyond the four corners of our site,” Tony Burkart, Beal’s senior vice president of public policy and affairs, said in a statement. “We look forward to growing alongside our neighbors and contributing to the enduring prosperity of De Soto for future generations.”
Beale said in the statement that it’s also working with Johnson County Community College to create a workforce and education partnership.
“This significant investment in our community, both in terms of economic impact and community support, speaks to Beale’s commitment to being a true community partner,” Mayor Rick Walker said in a statement.
Beale agreed to pay for the water, sewer and utility improvements, including new water wells along the Kansas River, new water transmission mains, expanded water treatment facilities, water storage facility and a new industrial wastewater treatment facility.
The company is required to pay its own energy bills and pay for its own grid updates, according to the city’s website. The city and Evergy — the energy provider for most of the KC metro — agreed to reduce its franchise fees for power use from 5% to 3.75%, according to the development agreement.
The multiphased project is anticipated to begin construction this year, with a full build-out of the 1 million square-foot campus complete by 2035. A Beale spokesperson said they anticipate announcing the end user tenant after construction begins.
Gardner turned them down
Beale’s announcement about community benefits came a week after the company withdrew its proposal in Gardner after the fellow rural Johnson County city declined to offer the company tax incentives for the project.
The withdrawal was a relief to Gardner residents near the 400-acre site on 191st Street and Renner Road, many of whom were concerned about the potential health and environmental efforts of a data center near their homes.
Beale still needs some approvals before it can begin construction in De Soto. City spokesperson Whitney Lange said that the Planning Commission needs to approve additional site plans for two additional buildings after the company significantly expanded the scope of the project.
The City Council’s agreement also stipulates that “supplemental agreements” will be complete in phases for water and sewer infrastructure improvements, which will be fully funded by Beale.
As of Tuesday, no meeting dates have been set, Lange said.
Beale Infrastructure said in a statement that it plans on holding a public meeting for De Soto residents in June, but no dates or a location have been set at this time.