Data Center FAQs

The EastGate Development is an approximately 1,200-acre economic development project located along Little Blue Parkway and M-78 Hwy in eastern Independence, owned by NorthPoint Development. The project is designed to promote economic development in the City and serve as a catalyst for additional investment, job creation and development.

A data center is a specialized facility that houses physical computing infrastructure to power, store, and support web-based systems. They are the physical location of digital information and processes such as: e-mail, photo storage, AI generation, search engines, etc. The equipment within data centers require specific environments to function safely and reliably, including climate-control solutions, battery systems, and reserve power systems. 

Nebius is a NASDAQ-traded global technology company building full-stack cloud infrastructure for AI. The company has operations and R&D hubs across Europe and the U.S. and operates data center facilities in the U.S., including in Kansas City. Its customers include major companies such as Microsoft, Meta, and Shopify. Nebius also owns TripleTen, a workforce and coding education program already active in Independence. 

Nebius purchased the project site from private property owners through a voluntary real estate transaction and the company is exploring developing a state-of-the-art data center campus. The City did not acquire or sell the land and did not use eminent domain for this project.

The project site is already zoned for industrial and business park uses. Data centers are an allowed use under the site’s existing zoning, meaning no rezoning is required. The project must still comply with all applicable development standards, site plan review, and building code requirements.

Nebius is exploring developing a state-of-the-art data center campus that may include:

• Up to 4 buildings on about 400 acres
• Approximately 2.5 million square feet
• Phased construction over 3–5 years
• Construction anticipated to begin in early 2026

The campus will be located northeast of Little Blue Parkway and Missouri Highway 78.

This project will require at least 800 megawatts (MW) of power, which will be supplied by a new, privately financed facility developed by Independence Power Partners (IPP) at the City’s retired Blue Valley Power Plant site.

The power plant will be built in phases. The initial phase will deliver 200 MW with an additional 600 MW when the facility is fully operational. Southwest Power Pool requirements mandate an additional 300 MW in reserve capacity.

No.  The project is structured so that:

• Nebius pays the full cost of its electricity
• Existing Independence Power & Light (IPL) customers are not impacted
• The City and IPL take on no debt
• Rates for current customers are protected regardless of market fluctuations

• Performance Guarantees: Nebius must ensure financial stability.
• Prepaid Billing: IPL receives payments upfront.
• Grid Event Protections: City/IPL not liable for Southwest Power Pool (SPP)-mandated reductions.
• Phase 2 Controls: City can renegotiate or cancel if costs exceed projections.
• Force Majeure Clauses: Provisions for unforeseeable events like natural disasters and grid emergencies
• Delays: IPP must still fulfill SPP energy and capacity requirements if deadlines are not met.

Nebius will use a closed-loop cooling system, which requires a one-time fill of approximately 1 million gallons per 200 MW building (~20% replenishment annually). This will be phased with building construction.

At full buildout, the expected recurring usage is estimated at between 400K-640K gallons per year usage for staff and process support. This expected recurring usage equates to roughly 1,753 gallons per day. 

The Courtney Bend Water Treatment plant currently produces an average of 28 million gallons of water per day (MGD). The City is well-equipped to provide Nebius with its water needs, including initial intake, annual replenishment, and daily use.

Currently, the top (non-wholesale) water customer in the City of Independence uses 162,542 gallons of water a day.

No. The City of Independence has adopted a Design and Construction Manual (per Chapter 20 of City Code) that establishes standards for both new development and redevelopment (click here for Section 5600 - Storm Drainage Systems and Facilities Design). These standards require the installation of stormwater collection area (detention pond) to manage runoff from surrounding land and parking lots. 

These detention ponds do not receive, capture, or treat wastewater generated by industrial or commercial operations. 

Noise impacts will be evaluated as part of the site planning and permitting process. Data centers are designed to operate quietly, and equipment such as generators and cooling systems are typically enclosed or screened. As part of the original Eastgate Development approval, an initial analysis of sound for industrial activities was conducted which will result in setbacks from residential areas. An additional noise study is underway, which is specific to a proposed data center, to ensure compliance with City noise standards.

All exterior lighting will be required to comply with City lighting standards, including shielding and directional controls to limit light spillover onto neighboring properties. Lighting plans will be reviewed and approved as part of the site plan process.

The project is expected to deliver significant long-term benefits, including:

• Tens of millions of dollars annually in payments to the City and IPL
• Tens of millions of dollars annually in payments to other taxing jurisdictions, including Independence and Fort Osage School Districts, Jackson County, Mid-Continent Public Library and the Metropolitan Community College.   
• Hundreds of construction jobs and 125 permanent high-paying technology jobs
• Long-term investment in local infrastructure
• Community benefits partnership focused on education and community wellbeing initiatives.  

Missouri Chapter 100 authorizes cities and counties to issue industrial development bonds (IDBs) to finance a wide variety of commercial facilities and equipment, and to offer real and/or personal property tax abatement, sales tax exemption on construction materials, and sales tax exemption on tangible personal property. 

Under this type of financing, the company passes title in the real or personal property involved to the city pursuant to a deed and/or bill of sale. The city will issue the revenue bonds in the amount necessary to finance the purchase, new construction, or expansion contemplated for the project. The city will retain ownership of the real and/or personal property and lease it to the company. The rent charged to/paid by the company will be an amount sufficient to pay the principal and interest on the bonds as they come due. Most commonly, the bonds are purchased by the company. The lease-purchase agreement will also provide for the company to resume or assume ownership of the real and/or personal property once the bonds have been paid off.

Because title to the property is held in the name of the city during the lease term, the property acquired with the bond proceeds is tax exempt, which effectively results in tax abatement for the company. Under the city’s program, the company will be required to make payments in lieu of taxes (PILOTs) for a portion of the taxes it would have otherwise been required to pay. In addition to property tax abatement, the company may also benefit from a sales tax exemption for construction materials and/or equipment for the project.

IDB financing is a useful tool to attract responsible new industries to locate in the area, as well as encourage companies already in the area to remain by assisting them in improving their present facilities or in building new ones. The end result is often a combination of increased job opportunities, existing job retention, and large-scale capital investment.

Visit ded.mo.gov/programs/business/chapter-100 for complete information on the Missouri Chapter 100 Program.

The City Council heard an hour-long presentation about Chapter 100 tax abatements during the Monday, Feb. 23 Council Study Session. Click here to watch it on YouTube.

The City Council voted 5-2 to approve a Chapter 100 tax abatement for the Nebius development during the Monday, March 2 City Council Meeting. Click here to watch it on YouTube (vote begins at 4:46:03).

Nebius has committed to being a long-term community partner through:

• Transparent communication and engagement
• Creation of a Community Engagement Panel to provide input into the project
• Community benefits plan, focused on supporting:
  • K-12 STEM, robotics and AI literacy education
  • Workforce and technical training
  • Public safety and first responder support
  • Environmental conservation and volunteerism

Certain discussions were held in executive sessions as allowed by Missouri law to protect the City’s negotiating position while power purchase agreements were being finalized. This helped ensure lower costs and stronger protections for the City and residents.

Upcoming steps include:

• Additional City Council approvals
• Public meetings and Community Engagement Panel formation
• Continued community engagement as the project advances
• Site planning, engineering review, and building permits to be reviewed administratively