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Data Centers in Kansas City

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Kansas City – Central Hub for US Connectivity

Executive Summary

Kansas City is a strategic Tier 2 data center market ideal for businesses requiring low-latency connectivity across the entire United States. Its central location provides a significant advantage for disaster recovery and content delivery strategies. This market offers an excellent balance of cost, connectivity, and geographic stability, protecting critical applications and ensuring national reach.

Kansas City: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent carrier access and network density for a secondary U.S. market.
Direct Cloud On-RampsOver 1 — as of September 2025Native access to AWS simplifies hybrid cloud architecture and improves performance.
Power Cost$0.07 - $0.09/kWh (est.)Competitive industrial power rates support high-density compute and storage deployments.
Disaster RiskHigh (95.35 percentile)Primarily severe weather risks manageable with modern, purpose-built data center designs.
Tax IncentivesYesState-level sales tax exemptions are available for qualifying data center equipment.
Sales TaxState sales tax: 4.225%Incentives can offset this tax on large capital equipment purchases.

Network & Connectivity Ecosystem

Kansas City serves as a critical network interconnection point for the Midwest. The market provides resilient, high-performance connectivity options suitable for enterprise and service provider deployments.

Carrier Density & Carrier Neutrality With approximately 20 unique network providers, as of September 2025, Kansas City has a healthy and competitive connectivity market. Multiple carrier-neutral facilities ensure customers have choice and can engineer redundant network paths.

Direct Cloud On-Ramps The market features over 1 direct cloud on-ramp, providing dedicated access to 1 cloud region as of September 2025. This includes private network connections to AWS, allowing for secure, high-throughput hybrid cloud operations.

Internet Exchange Points (IXPs) The primary exchange is the Kansas City Internet eXchange (KCIX). KCIX facilitates efficient local traffic peering, which reduces latency and transit costs for businesses serving the regional market.

Bare Metal Bare metal server options are available from multiple providers in Kansas City. Services from companies like Hivelocity offer dedicated compute resources for performance-sensitive applications.

Power Analysis

Average Cost Of Power Industrial electricity rates in the Kansas City area are competitive, estimated between $0.07 and $0.09 per kWh, as of September 2025. These favorable costs make it an attractive location for workloads with high power consumption.

Power Grid Reliability The power grid serving the primary data center zones is well-engineered and reliable. The state's energy mix is dominated by coal and natural gas, with a component of nuclear and renewable generation contributing to a steady supply.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Kansas City are located near the region's primary business districts and the growing "Silicon Prairie" tech corridor. This proximity offers low-latency connectivity for local financial, healthcare, and technology firms.

Regional Market Reach From its central U.S. location, Kansas City provides excellent geographic coverage, reaching over 90% of the continental U.S. population within a 50-millisecond round-trip latency. This makes it an ideal hub for national content distribution and application delivery.

Tax Advantage For Data Centers Missouri offers a significant sales tax exemption on equipment, machinery, and energy used in qualifying data centers. This program directly reduces the capital expenditure required for building new facilities or expanding existing footprints.

Natural Disaster Risk

Kansas City has a high natural disaster risk profile, with a FEMA National Risk Index score of 95.35 out of 100, as of September 2025. The risk is almost entirely driven by weather-related events, which modern data centers are engineered to withstand.

Key risks include:

  • Tornadoes
  • Severe Storms (hail, strong wind, lightning)
  • Riverine Flooding
  • Winter Weather & Ice Storms
  • Extreme Temperatures (heat and cold waves)

The area has a very low risk of seismic activity, and as an inland market, it has no exposure to hurricanes or coastal flooding.

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