Independence data center moves forward after judge rejects referendum petition
Independence’s new artificial intelligence data center is moving forward after a Wednesday court decision upholding extensive tax breaks for the project.
A Jackson County judge ruled against three Independence residents who sued earlier this month in an attempt to bring the data center incentives to a public vote through a petition process.
Three organizers with an ad hoc group opposing the data center turned in more than 20 pages of signatures to the city on March 2 to kick off a referendum process. The process would have allotted citizens 30 days to gather enough signatures to demand a ballot question on the previously passed tax breaks for the $150 billion, 400-acre data center.
When City Clerk Suzanne Holland refused to certify the petition, the three organizers — Rachel Gonzalez, Kharma Magers and Misty Vaughn — sued her and the city on March 9.
Judge Jennifer Phillips ruled Wednesday that the tax breaks do not legally qualify to be overturned by a petition and referendum process. A Monday hearing had centered around whether the breaks were eligible for a referendum under the city charter and its sections pertaining to ordinance types and contract law.
The court also reversed its previous decision extending residents’ deadline to collect signatures for their referendum effort.
The decision eliminates a legal challenge to a $6.2 billion package of financial incentives approved 5-2 by city officials for Dutch AI services company Nebius, including 90% to 98% tax breaks. The data center, which will be about twice the size of Arrowhead stadium, will instead pay PILOT fees (Payment In Lieu Of Taxes), bringing in more than $650 million to schools and other taxing jurisdictions over the next 20 years.
Nebius previously said that the company would likely pull out of Independence if the tax breaks did not pass.
Chuck Hatfield, an attorney for the city, was not immediately available for comment. A spokesperson for the city of Independence wrote that the city “appreciates the Court’s thoughtful review and ruling in this matter.”
“This decision reinforces the balance built into our City Charter, allowing the City to carry out specific projects while still protecting residents’ ability to challenge certain types of ordinances,” the spokesperson wrote. “With this ruling, the City will move forward with its commitments and remain focused on the long-term success of our community.”
Gonzalez was not immediately available to speak to The Star but shared her thoughts on the verdict via social media Wednesday afternoon.
“While this is not the outcome we were hoping for, it does not change what we’ve built together or why we started this in the first place,” Gonzalez wrote on Facebook. “Over the past few months, something powerful has taken place in this community. Neighbors have talked to neighbors. People have knocked on doors, asked questions, listened to one another, and stepped into the civic process in a real and meaningful way.”
Gonzalez wrote that organizers “respectfully disagree” with the decision and are considering filing an appeal. Organizers will turn in their accrued signatures to the city Monday morning regardless of the verdict, Gonzalez wrote, in a symbolic show of opposition to the data center.
Residents have been coordinating daily petition drives for almost a month, gathering outside eateries, libraries, government buildings and other hotspots around Independence. As of Monday, about 100 residents had their own copies of petitions in circulation and had collected more than 2,200 signatures. Gonzalez previously said that data center opponents had hoped to gather 5,000 signatures by March 29.
This story was originally published March 25, 2026 at 4:52 PM.
