As Independence nears vote on AI data center funding, here’s everything we know
A massive, multibillion-dollar artificial intelligence data center is inching toward construction in Independence — and city leaders are about to vote on a sweeping financing plan that could either make or break the project.
Nebius, a Dutch company specializing in AI services, hopes to make Independence the home of its flagship AI center in the United States.
The planned Independence data center is expected to cost $6.6 billion to construct and will be stocked with up to $144 billion worth of specialized equipment, for a total investment of $150 billion.
Ground is set to break in 2026, but company representatives now say they’re likely to pull out of the project altogether unless the city approves an incentive package including more than $6 billion in tax breaks during the City Council meeting on Monday.
Here’s what we know so far about the proposed AI data center — and the impact it’s already having on life in Independence.
Building a data center
Along with several locations in Europe, Nebius currently shares two data centers with other AI companies, one in New Jersey and one in the former Kansas City Star building at 1601 McGee St.
The new data center will include at least four buildings and is expected to be more than 2.5 million square feet on 400 acres. That’s about twice the size of Arrowhead Stadium. It will occupy a significant portion of the Eastgate Commerce Center in eastern Independence.
Nebius purchased the land last year from Kansas City developer NorthPoint Development, according to city records. The land was already zoned for industrial use, which made it more appealing to Nebius, according to company representatives and city staff.
Construction on the massive space is set to start this summer and last for 3 to 5 years. Construction crews have already begun working on the land and digging runoff ponds.
Power plant reopening
Independence city officials began negotiations with Nebius in mid-2025 around how to provide power for the planned data center on such a large scale.
At full operations, the data center is expected to use up to 800 megawatts of energy at a time. By comparison, one megawatt of energy can power between 400 and 900 homes for a year.
The plan to fuel the AI data center relies on reopening and expanding the nearby Blue Valley Power Plant, which has been defunct since 2020. It will reopen in stages, building up to more than nine times its former capacity.
United Energy Trading, a large North American crude oil and natural gas company, started working with the city of Independence in 2024 on the permitting process to reopen the Blue Valley Power Plant. The plant will reopen in stages, generating 250 megawatts of capacity by 2027 and up to 1100 by 2029.
Independence will contract with third-party energy providers to fuel the data center with coal, gas and wind energy between June 2026 and November 2027.
The city and Nebius have not specified what form of energy the built-out plant would generate, though the Blue Valley Power Plant was previously fueled by natural gas.
The energy it generates will be managed by Independence Power & Light and fully paid for by Nebius, with construction funded by a venture called Independence Power Partners. The city will collect revenue from the plant in the form of a 9.08% payment in lieu of taxes, or PILOT fee .
Funding structure
The empty property where the data center would sit currently generates about $3,000 a year in property tax revenue.
The City Council’s upcoming vote revolves around a proposed bond and incentive plan, including $6.2 billion in tax breaks for Nebius. Under the financing plan, the city of Independence would issue up to $150.6 billion in bonds to support the project’s costs and would hold ownership of the property, leasing it back to the developer.
The bonds are a financing tool that would not put the city on the hook directly for any project costs but would make Nebius eligible for tax breaks, including 98% real property tax breaks and 90% on personal property.
Instead of paying taxes on its real or personal property for 20 years, Nebius would pay out $651.5 million in PILOTs over that same time, or about $32.5 million per year.
The money would go to government agencies like local school districts, libraries and the county, with the Independence School district as its main beneficiary. ISD would receive an average of $23.2 million per year, according to city records.
Without any tax breaks, Nebius would owe over $6.9 billion in property taxes during the 20 years, or $345.86 million per year.
Neighbors’ concerns
Many Independence residents, particularly those living close to the proposed data center site, have strongly opposed Nebius moving into town.
Along with an increased presence at City Council meetings, residents have attended and organized multiple town hall meetings with Nebius representatives and city staff.
Residents’ concerns have centered around how the project will impact livability in the surrounding neighborhoods, with multiple people speaking about potential light, noise and air pollution. Water use and wastewater treatment has also been a frequently cited concern, along with potential unknown long-term health effects.
In addition, those living on Bly Road, which adjoins and overlooks the proposed site, have expressed concern that their property values could plummet as construction begins. Neighbors also say local wildlife — including eagles and other migratory birds — are already being displaced.
City officials and Nebius representatives have repeatedly emphasized that the data center will stay within local, state and federal guidelines around environmental concerns. They have also referenced specific protocols to accommodate nesting eagles, and have said that Nebius’ planned water use model — a “closed-loop” system recycling most of the water used — will be potentially less of a drain on city water resources than other comparable data centers.
However, several residents have told The Star that they do not feel as though city officials are taking their concerns seriously, and some have said that councilmembers’ handling of the data center situation has informed their approach to the upcoming council and mayoral election in April.
Labor union support
Supporters of the project, though, say that the money the data center would bring into Independence — mostly in the form of annual PILOT fees and construction jobs — would be too impactful to pass up.
The Independence School District has led the charge, with board members passing a symbolic resolution in support of the incentive plan for the data center last week. Interim superintendent Dr. Cynthia Grant said that the potential funding is significant both in dollar amount and in the stability it could represent as a funding source.
School funding is closely tied to property tax values in Missouri. Ongoing controversies with and changes to the 2023 and 2025 property tax cycles in Jackson County have disrupted some school districts’ budgets, including Independence.
Unions around Independence have also said that the data center, and the work it will generate, could help local laborers build stable careers while keeping project money in Independence.
City officials have said they expect the data center to generate about 125 “specialized” jobs and about 500 contract-based positions for construction and other forms of on-site labor. They have not committed to prioritizing local hires.
Other labor groups who have spoken in support of the planned data center include Pipe Fitters Local 533, the Community Services League, the Independence Chamber of Commerce and the Independence Chapter of the International Brotherhood of Electrical Workers.
This story was originally published February 27, 2026 at 6:00 AM.
