As demand for cloud computing, artificial intelligence (AI), streaming services, and digital storage continues to grow, data center developers are evaluating locations across the country for potential expansion.
Site selection is typically based on several factors, including power infrastructure, fiber connectivity, land availability, tax policy, water access, and local planning processes. In Kansas, Pottawatomie County and the Greater Manhattan region contain several characteristics that may align with some of those criteria.
This does not mean a project is guaranteed or predetermined. Rather, it helps explain why regions like northeastern Kansas may receive inquiries or early-stage interest during the evaluation process.
Power Infrastructure
Reliable electricity is one of the most important considerations for modern data centers. Large facilities require substantial power capacity to operate servers, networking equipment, and cooling systems continuously.
The region’s proximity to the Jeffrey Energy Center and existing transmission infrastructure may be one factor developers evaluate. Evergy has also established policies for large-load customers, creating a framework for reviewing projects with significant energy demands and planning for future infrastructure needs.
Developers often look for regions that can demonstrate both current electrical capacity and the ability to expand service over time.
Fiber Connectivity
Data centers also depend on high-speed fiber optic networks to move data between users, cloud platforms, and other facilities.
While the Manhattan region is not considered a major national internet hub, it does have access to regional fiber infrastructure. In many areas, additional fiber investment follows large-scale development, improving connectivity over time.
Land Availability
Large data center campuses may require dozens or even hundreds of acres for buildings, substations, setbacks, and future expansion.
Compared to more densely developed metropolitan areas, parts of Pottawatomie County contain undeveloped or lightly developed land that may meet the size and configuration requirements some projects seek. Developers also evaluate road access, zoning, environmental conditions, and proximity to utilities and infrastructure.
Kansas Senate Bill 98 and Tax Policy
State tax policy has also become an important factor in data center site selection.
In 2025, Kansas passed Senate Bill 98, which created a sales tax exemption for qualifying data center projects. The legislation allows eligible companies to receive exemptions on certain construction materials, equipment, and operational purchases tied to large-scale data center investments.
Many states offer similar incentives because data centers require substantial upfront capital investment in servers, electrical equipment, cooling systems, and infrastructure. Sales tax exemptions can significantly reduce project costs, making states more competitive when developers compare potential locations.
Kansas’ adoption of Senate Bill 98 places the state within a growing group of states that actively compete for data center investment through targeted tax policy.
At the same time, communities and policymakers continue to debate how incentives should be structured, what public benefits should accompany them, and how projects align with long-term infrastructure and economic goals.
Climate and Operations
Climate can influence how efficiently data centers operate. Because servers generate significant heat, facilities require extensive cooling systems.
Regions with moderate seasonal temperatures may offer opportunities for more energy-efficient cooling strategies during parts of the year. While Kansas is not among the coldest climates in the country, northeastern Kansas generally avoids some of the more extreme temperatures found in southern markets.
Regional Coordination
Large infrastructure projects often involve coordination among utilities, local governments, counties, state agencies, and economic development organizations.
Developers frequently evaluate whether regions have clear planning processes, communication channels, and the ability to coordinate infrastructure and permitting requirements. Communities also consider how potential projects align with land use plans, infrastructure capacity, and long-term priorities.
Looking at the Bigger Picture
Large infrastructure discussions are not new to the region.
When the Jeffrey Energy Center was developed decades ago, communities debated many of the same topics discussed today with data centers, including land use, infrastructure impacts, economic considerations, and long-term community goals.
Today’s conversations surrounding data centers are part of a broader national discussion about digital infrastructure and how communities evaluate large-scale industrial and technology-related projects.
Whether projects ultimately move forward depends on many factors, including market conditions, infrastructure planning, regulatory review, community input, and local policy decisions. The broader question for communities is not simply whether interest exists, but how projects should be evaluated and structured to align with local priorities.
Sources:
- Kansas Legislature — Senate Bill 98
- SB 98 Kansas Commerce Sales Tax Exemption
- Evergy Large Load Power Service Tariff
- U.S. Department of Energy — Data Center Energy Use
- IBM — “What Is a Data Center?”
- Cisco — “What Is a Data Center?”
Read or download our compiled Reference Guide or abbreviated Summary Guide on data centers.
