Escalation: Independence City Council approves $6.26b data center tax breaks

The Independence City Council voted 5-2 after hours of testimony to approve a tax incentive plan for Nebius’ planned AI data center near Route 78 and Little Blue Parkway. The package grants $6.26 billion in tax breaks over 20 years and authorizes up to $150.6 billion in industrial revenue bonds, with the city taking title to the site and equipment and leasing it back to the company. The bonds are tied to project revenues and are not the city’s debt.

The abatement covers up to $150.6 billion of property and equipment. One set of figures puts it at 98% off land and buildings and 90% off equipment, while another describes it as a 90% abatement overall. In place of property taxes, Nebius will pay about $651.5 million over 20 years to local jurisdictions, roughly half to the Independence School District. Without the deal, property taxes over that span were estimated above $6.9 billion, while the site now generates under $3,000 a year.

The campus will cover roughly 400 acres with four main buildings totaling about 2.1 million square feet. It is planned to draw about 800 megawatts, with total capacity up to 1.2 gigawatts. The Blue Valley Power Plant is slated to reopen in stages to 250 megawatts by 2027 and 1,100 megawatts by December 2029 to serve the site. Work is slated to start later this year, with the first building projected to open in 2028.

Residents packed the chamber and overflowed into the lobby, with more than 60 speakers and repeated outbursts; many stormed out after the vote. Labor unions turned out in support. Opponents are collecting signatures to force a citywide referendum on the incentives.

AI-synthesized from multiple reported sources