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1.14M SF Data Center Development Opportunity
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1.14M SF Data Center Development Opportunity
An institutional-scale opportunity to participate in the development of a major 1.14 million-square-foot data center campus in the Kansas City metropolitan area. The project has received approval from the relevant city authorities and is planned for development on approximately 290 acres within an established industrial and commercial campus. The site benefits from its proximity to significant advanced-manufacturing and technology infrastructure, including a recently operational $4 billion electric-vehicle battery manufacturing facility.
The development is structured in two phases, with four buildings planned in total. Phase I comprises two approximately 285,000-square-foot buildings, with construction scheduled to commence in 2026 and completion targeted for 2027.
Investment Highlights
- 1.14 million SF planned data center development
- 290-acre development site within an established commerce center
- Four-building development structured across two phases
- Phase I: Two buildings of approximately 285,000 SF each
- Construction targeted for 2026, with Phase I expected to be completed in 2027
- City Council-approved development with no rezoning required
- Strategic positioning adjacent to a major $4 billion electric-vehicle battery manufacturing facility
- Approved industrial revenue bond framework of up to $50 billion
- Potential 10-year tax abatement for each of the four buildings, subject to the approved incentive structure
- Expected to create 100+ permanent jobs upon completion
Development Scope
| Metric | Details |
|---|---|
| Total Planned Data Center Area | 1.14M SF |
| Development Site | ~290 acres |
| Total Buildings | 4 |
| Development Phases | 2 |
| Phase I Buildings | 2 |
| Phase I Building Size | ~285,000 SF each |
| Construction Start | 2026 |
| Phase I Target Completion | 2027 |
| Expected Employment | 100+ jobs |
Strategic Location
The project is situated within an established commerce center in the Kansas City metropolitan area, in close proximity to major industrial and technology infrastructure.
A recently operational $4 billion EV battery manufacturing facility is located immediately east of the development site, creating a significant concentration of advanced industrial activity in the surrounding area.
Public-Sector Support
The local municipality has approved an industrial revenue bond framework of up to $50 billion for the project.
The approved structure provides for potential incentives including:
- Tax abatement
- Sales tax exemption on qualifying construction materials
- Sales tax exemption on equipment and furnishings
- Certain qualifying labor services
- 10-year tax abatement for each of the four buildings
No new abatements are scheduled to be issued after 2040, according to the source material.
Further project details, investment structure, development economics, power availability, and transaction terms are available to qualified parties upon request.
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Base Rent Revenue: Monthly capacity reservation fee per critical kW.
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Recoverable Power & Utility Passthrough: Electricity consumed by IT load and cooling infrastructure billed directly to tenants at cost.
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EBITDA: Operating earnings before debt service, depreciation, amortization, and income taxes (incorporating the 10-year municipal tax abatement framework and sales-tax exemptions).
Revenue, Opex & EBITDA Breakdown (Annual Stabilized)
| Metric | Conservative | Moderate | Aggressive |
| Critical IT Capacity | 140 MW (140,000 kW) | 155 MW (155,000 kW) | 170 MW (170,000 kW) |
| Stabilized Occupancy | 90.0% (126.0 MW billed) | 95.0% (147.25 MW billed) | 98.0% (166.6 MW billed) |
| Base Rent Rate ($/kW/mo) | $145 / kW / month | $165 / kW / month | $185 / kW / month |
| Contract Base Rental Revenue | $219,240,000 | $291,555,000 | $369,852,000 |
| Estimated Power Passthrough Revenue (@ $0.065/kWh) | $86,189,000 | $100,720,000 | $113,955,000 |
| Total Gross Revenue | $305,429,000 | $392,275,000 | $483,807,000 |
| Direct Electricity Commodity Expense (Passthrough) | ($86,189,000) | ($100,720,000) | ($113,955,000) |
| Net Operating Revenue | $219,240,000 | $291,555,000 | $369,852,000 |
| Property Management & Facility Operations | ($15,346,800) | ($17,493,300) | ($18,492,600) |
| Security, Campus Ops & Compliance | ($6,577,200) | ($7,288,875) | ($7,397,040) |
| Facility Repairs, Maintenance & Critical Spares | ($10,962,000) | ($11,662,200) | ($11,095,560) |
| Post-Abatement Municipal Fees / PILOT Contribution | ($6,577,200) | ($7,288,875) | ($11,095,560) |
| Total Campus Operating Expenses | ($39,463,200) | ($43,733,250) | ($48,080,760) |
| Campus EBITDA | $179,776,800 | $247,821,750 | $321,771,240 |
| EBITDA Margin (% of Net Operating Revenue) | 82.0% | 85.0% | 87.0% |
| EBITDA Margin (% of Total Gross Revenue) | 58.9% | 63.2% | 66.5% |
Key Operational Drivers
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EBITDA Flow-Through: Because electricity is treated as a 1:1 pass-through line item, bottom-line cash generation is dictated by the spread between the contracted base capacity rate ($145–$185/kW/mo) and non-power operational overhead ($23–$26/kW/mo across security, engineering, and maintenance).
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Tax Abatement Contribution to EBITDA: The 10-year local property tax abatement shields an estimated $18M to $24M annually in full ad-valorem real property taxes across the 4 buildings, keeping cash operating margins well above the 80% mark on net revenue throughout the 5-year hold period.
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Debt Service Coverage: Sizing against Senior Debt at 60% of TDC ($798M–$816M) at 6.25%–7.50% interest, stabilized annual debt service ranges from ~$60M to $67M, yielding a healthy Debt Service Coverage Ratio (DSCR) of 2.68x to 4.80x against EBITDA.
Description
An institutional-scale opportunity to participate in the development of a major 1.14 million-square-foot data center campus in the Kansas City metropolitan area. The project has received approval from the relevant city authorities and is planned for development on approximately 290 acres within an established industrial and commercial campus. The site benefits from its proximity to significant advanced-manufacturing and technology infrastructure, including a recently operational $4 billion electric-vehicle battery manufacturing facility.
The development is structured in two phases, with four buildings planned in total. Phase I comprises two approximately 285,000-square-foot buildings, with construction scheduled to commence in 2026 and completion targeted for 2027.
Investment Highlights
Development Scope
Strategic Location
The project is situated within an established commerce center in the Kansas City metropolitan area, in close proximity to major industrial and technology infrastructure.
A recently operational $4 billion EV battery manufacturing facility is located immediately east of the development site, creating a significant concentration of advanced industrial activity in the surrounding area.
Public-Sector Support
The local municipality has approved an industrial revenue bond framework of up to $50 billion for the project.
The approved structure provides for potential incentives including:
No new abatements are scheduled to be issued after 2040, according to the source material.
Further project details, investment structure, development economics, power availability, and transaction terms are available to qualified parties upon request.
Revenue, Opex & EBITDA Breakdown (Annual Stabilized)
Key Operational Drivers
Basic Details
Target Price:
$ 25,000,000
Gross Revenue
$305,429,000
EBITDA
$179,776,800
Business ID:
L#20261147
Country
United States
Detail
Published on September 8, 2026 at 11:20 am. Updated on September 8, 2026 at 11:20 am