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Data Centers in Kansas City

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Kansas City – Central Hub for National Connectivity

Executive Summary

Kansas City is an excellent market for enterprises requiring a central U.S. footprint to deliver low-latency services nationwide. Its strategic location provides a resilient disaster recovery option for coastal deployments, ensuring high availability and protecting revenue streams. The region offers a compelling combination of reliable infrastructure, favorable power costs, and a growing technology ecosystem.

Kansas City: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong national fiber routes converge in the region.
Direct Cloud On-Ramps0 – as of September 2025Access is available via private network extensions to hubs like Chicago and Dallas.
Power Cost$0.07 - $0.09/kWhFavorable rates with a significant renewable energy mix.
Disaster RiskHigh (87.18 / 100) – as of September 2025Main risks are weather-related; lacks coastal threats.
Tax IncentivesYesDC-specific sales tax exemption for data center equipment has been proposed.
Sales Tax6.50% (Kansas State) – as of September 2025This is the statewide sales tax rate.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The Kansas City market is served by over 12 carriers, offering diverse connectivity options in multiple carrier-neutral facilities, as of September 2025. This ensures competitive pricing and resilient network design.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Kansas City, as of September 2025. Businesses achieve secure, low-latency cloud access through private network connections to major cloud hubs in Chicago and Dallas.

Internet Exchange Points (IXPs): Local peering is primarily facilitated through the Kansas City Internet Exchange (KCIX). This IXP improves traffic routing efficiency and reduces latency for users and businesses within the region.

Bare Metal: Bare metal server options are available in the market. Providers like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Average Cost Of Power: Industrial power rates in Kansas City typically range from $0.07 to $0.09/kWh, as of September 2025. This competitive pricing structure helps control operational expenditures for high-density deployments. The regional grid features a mix of approximately 40% wind power and 60% fossil fuels.

Power Grid Reliability: The regional power grid is well-engineered and reliable. It is supported by a diverse generation portfolio that includes significant wind power, enhancing supply stability for critical data center operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the area are strategically located to serve key business districts like Downtown Kansas City and the corporate corridors in Overland Park. This proximity supports local finance, technology, logistics, and healthcare industries with low-latency infrastructure.

Regional Market Reach: Kansas City's central location makes it an ideal hub for serving the entire Midwest. Its network reach allows for efficient content delivery and application performance to a massive population base across the central United States.

Tax Advantage For Data Centers: Kansas offers significant tax advantages, including a proposed sales tax exemption on data center equipment. This incentive directly lowers the capital investment needed for new builds and hardware refreshes, improving the total cost of ownership.

Natural Disaster Risk

Kansas City has a High natural disaster risk profile, with a FEMA National Risk Index score of 87.18 out of 100, as of September 2025. The primary risks are severe weather events, including tornadoes, strong winds, hail, and ice storms. Other notable risks are riverine flooding and heat waves. The location is free from hurricane, tsunami, and significant seismic threats.

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