Despite the airy name, the “cloud” is not floating above us. Every email we send, video we stream, and AI tool we use is processed and stored in massive, secure buildings called data centers. These facilities are filled with servers and networking equipment that power the digital economy.
A Growing Appetite for Space & Power
As life moves increasingly online — from banking and health care to artificial intelligence — demand for data storage is surging. That requires ever-larger facilities, often spread across hundreds of acres, with massive needs for electricity and sometimes water for cooling.
Industry experts estimate U.S. data center electricity use is growing about 15% per year, four times faster than overall demand. By 2030, they could consume nearly 9% of the nation’s electricity — more than double today’s share. That scale has utility planners and environmental advocates paying close attention.
Cooling adds another layer. Some data centers use billions of gallons of water annually, while others shift to refrigerant-based systems that save water but consume more energy.
The Business of Data Centers
There are three common models:
- Colocation: private operators lease space, power, and connectivity to many customers.
- Wholesale/Hyperscale: large leases to a handful of tenants.
- Owner-operated hyperscale: cloud giants such as Amazon, Google, Microsoft, or Meta build their own.
Investor-owned centers earn revenue from long-term contracts for power and connectivity. The viability of projects often hinges on factors like power availability, tax treatment, and government incentives. In 2022, Kansas lawmakers approved a 20-year state sales tax exemption for data centers costing more than $250 million, part of a broader push to lure major tech investment.
Why Kansas City?
KC has emerged as a prime location for data center growth for several reasons:
- Fiber crossroads: KC sits on major national fiber optic routes, making it a “connectivity hub” that speeds up the time it takes data to move between coasts.
- Central location: Being in the middle of the country shortens physical distance for data traffic compared with coastal sites.
- Low natural hazard profile: Unlike coastal regions, KC is less prone to hurricanes or earthquakes.
- Lower land and construction costs: Compared to tech-heavy coasts, building here is more affordable.
Together, these factors have put KC on industry watchlists as a market with high potential for data center expansion.
What’s Happening Now
Google is moving forward with “Project Mica,” a multibillion-dollar Northland campus.In 2025, Metaopened an $800 million, 1 million sq. foot data centerU.S. 169. In the Golden Plains Technology Park. Netrality’s 1102 Grand downtown serves as a major interconnection hub for networks. Other developers are exploring large-scale campuses that could rival some of the country’s biggest projects.
Local planners say such campuses could generate tens of millions in new property tax revenue, turning underused land into major economic engines. At the same time, the scale of electricity demand — hundreds of megawatts per project — raises questions about utility upgrades, new substations, and who pays for improvements. Environmental advocates are pushing for requirements that these facilities run on renewable energy.
Noise has also been raised as a concern, since backup diesel generators can be loud during tests or power outages. However, many newer campuses are designed with fewer test runs, sound insulation, and larger buffer zones from neighborhoods. As a result, noise is still an issue to watch but is mentioned less frequently today than in earlier debates.
Looking Ahead
Forecasting the next two decades is difficult, but analysts agree on one point: demand will keep climbing. The International Energy Agency projects data center electricity demand to rise about 15% annually worldwide, driven by AI adoption, chip advances, and grid expansion.
For Kansas City, that means choices ahead. If data center growth materializes as expected, the region will need careful planning around power, water, land use, and incentives. Supporters highlight the potential for jobs, a stronger tax base, and a growing tech ecosystem. Critics warn about environmental strain and subsidies that may outweigh benefits.
The bottom line: the “cloud” lives somewhere — and increasingly, that somewhere could be Kansas City.