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A major data center project may soon take shape in Osawatomie, Kansas, as the city explores the feasibility of developing a 115-acre facility in its Northland area. The City of Osawatomie has entered into a predevelopment agreement with Alcove Development, a real estate company based in northeastern Kansas, to assess the viability of the project, according to a statement from local officials.
The proposed data center campus would cover approximately 115 acres of land, with the city identifying tracts 2 and 3 as likely sites. Located at 335th Street and Osawatomie Road, these land parcels have been designated for industrial and commercial use. "The city has entered into a predevelopment agreement with Alcove Development to explore the feasibility of a potential data center campus", the City of Osawatomie stated in an online post.
The data center is expected to span 600,000 square feet (55,740 square meters) and offer a power capacity of 50 to 150 megawatts (MW). This ambitious project is backed by an estimated investment ranging from $900 million to $1.1 billion and includes a proposed 50 percent property tax abatement over a 10-year period. Such a facility would represent one of the largest economic projects in recent memory for Osawatomie.
Alcove Development, which has experience in commercial and residential projects, is leading the effort to evaluate whether the site is suitable for the data center. However, no formal application has been submitted yet. The current predevelopment agreement grants a six-month period for due diligence, during which the city will determine whether the proposal aligns with local needs and infrastructure.
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The Northland area has been a focus for economic development for nearly two decades. According to the city, approximately 100 potential development leads for the property were pursued between 2007 and 2025, but none have resulted in construction so far. At present, the city has confirmed that "there is not any other industry reviewing the site."
The decision to pursue this opportunity comes with both optimism and questions from the community. Commenters on the city's Facebook page have expressed mixed opinions about the possibility of building a data center in the area. Some have voiced concerns, while others are open to the potential economic benefits.
City officials emphasized that the predevelopment agreement is an exploratory step and not an indication of approval. "This discussion is not about liking or disliking a particular industry. It is about how to use one of the most significant economic assets the City controls", the city shared. Officials also acknowledged the tradeoffs involved with any major development, stating, "Every development option comes with tradeoffs. There is no impact-free path."
Osawatomie’s location in Miami County places it southwest of Kansas City, an area already home to the state’s largest cluster of data centers. On the Missouri side of the Kansas City metropolitan area, additional data centers contribute to the region’s growing reputation as a hub for the industry.
As the due diligence process unfolds over the next several months, residents and local officials will continue to weigh the opportunities and challenges of bringing the proposed data center to fruition. For now, the project remains in its exploratory phase, with no final decision yet made on whether construction will move forward.
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