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Data Centers in Kansas

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Kansas – Central Hub for Resilient Infrastructure

Executive Summary

Kansas is a strategic market for enterprises requiring a central US footprint for disaster recovery and low-latency application delivery. Its combination of a strong renewable energy profile and emerging tax incentives provides a cost-effective alternative to more congested coastal markets. This location is ideal for businesses looking to serve the entire continental US efficiently while mitigating certain operational risks.

Kansas: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong regional connectivity, well-suited for secondary or DR sites.
Direct Cloud On-Ramps0 – as of September 2025Direct access is via nearby hubs like Kansas City (MO) or Dallas.
Power Cost$0.07 - $0.09/kWhPower mix is rich in renewables, especially wind, offering potential cost stability.
Disaster RiskHigh (87.18 NRI Score)Primary risks are meteorological; geologic and coastal risks are negligible.
Tax IncentivesYesA proposed sales tax exemption for data center equipment can lower initial investment.
Sales Tax6.50% (State) – as of September 2025Local taxes may apply; incentives can offset some of this cost.

Network & Connectivity Ecosystem

Kansas provides a solid foundation for network connectivity, serving as a key midpoint for national data traffic. The ecosystem is reliable for workloads that require broad geographic reach without needing the density of a primary Tier 1 market.

Carrier Density & Carrier Neutrality: With access to over a dozen regional and national carriers, Kansas offers sufficient network choice for most enterprise needs, as of September 2025. Facilities generally provide multiple fiber entry points and carrier-neutral interconnection options.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Kansas, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via dedicated circuits to major hubs, primarily Kansas City and Dallas. Private network extensions offer secure, low-latency performance.

Internet Exchange Points (IXPs): Public peering is limited within the state. Most traffic is exchanged privately or routed through the Kansas City Internet eXchange (KCIX) in neighboring Missouri, which improves regional network performance and reduces transit costs.

Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers such as ColoCrossing and Hivelocity can serve the region from nearby data centers.

Power Analysis

Kansas stands out for its progressive energy policy, which translates into tangible benefits for data center operators.

Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09/kWh, as of September 2025. This competitive pricing is bolstered by a grid where approximately 40% of energy is generated from wind, providing a hedge against fossil fuel price volatility.

Power Grid Reliability: The state's power grid is engineered to support significant industrial and agricultural loads. Major data center corridors benefit from reliable infrastructure, often with access to redundant power feeds from separate substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

The state's business environment and central location create a compelling case for data center investment.

Proximity To Key Business Districts: Data centers in Kansas serve the Wichita aerospace and manufacturing sectors, the agricultural technology industry, and the growing commercial hub of the Kansas City metropolitan area.

Regional Market Reach: From Kansas, a single data center can deliver services to millions of people across the Midwest, Plains, and even parts of the South with low latency. It is an effective point of presence for reaching markets from Denver to Chicago and Dallas.

Tax Advantage For Data Centers: Kansas offers a significant financial advantage through proposed tax incentives. A key benefit is the sales tax exemption on data center equipment, which directly reduces the substantial capital expenditure required to build or expand a facility.

Natural Disaster Risk

Kansas has a high natural disaster risk profile, driven almost entirely by severe weather events, as of September 2025. The FEMA National Risk Index score is 87.18, placing it in a high-risk category.

The primary risks for data center operators are meteorological and require specific facility design and operational planning. Key hazards include:

  • Tornado
  • Strong Wind
  • Hail
  • Drought
  • Heat Wave
  • Winter Weather

The state has a negligible risk of earthquakes, wildfires, or coastal flooding, making it a secure location from a geological standpoint.

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