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Kansas is missing out on data center projects. Can sales tax breaks change that?

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Kansas is missing out on data center projects. Can sales tax breaks change that?


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  • Kansas lawmakers are considering a bill that would exempt data centers from paying sales tax on construction and equipment.
  • Supporters say the tax break is needed to attract data centers and the high-paying jobs they bring.
  • Opponents argue the tax breaks are too costly and that Kansas should focus on broader tax relief.
  • Some lawmakers also expressed concern about the impact data centers would have on the state’s electric grid.

Kansas politicians are renewing an effort to lure data centers to the state by giving such projects tax incentives.

The Senate voted 34-6 on Wednesday to pass Senate Bill 51, which sends it to the House. The bill would create a sales tax exemption for the construction or remodeling of a qualified data center in Kansas with a minimum investment of $250 million. The tax break would apply to the purchase of equipment and other costs.

State economic development officials say Kansas is missing out on data center projects and could continue to miss out on them without a tax incentive.

“The choice is simple,” said Sen. Joe Claeys, R-Wichita. “We can pass SB 51 and compete for billions in new investment, or we can continue to watch these opportunities go to other states.

“No state has ever attracted a significant data center investment without this basic exemption. This bill brings new investment, creates high paying jobs, improves our power infrastructure and generates long-term tax revenue. It’s time for Kansas to get in the game.”

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Kansas is missing out on data centers

Rachel Willis, of the Kansas Department of Commerce, told the Senate Commerce Committee last month that Kansas missed out on five projects in the past calendar year. That included a $10 billion data center campus that went to Louisiana and four separate projects, each worth $800 million, that chose Alabama, Minnesota, South Carolina and Wyoming.

Meanwhile, the agency’s business recruitment team has 14 data center projects in the pipeline. Willis said tax incentives would help entice those projects to choose Kansas.

Greater Topeka Chamber president Juliet Abdel indicated that the capital city has been considered for some of the projects.

“Go Topeka, our Topeka and Shawnee County economic development entity, has had several Data Center projects express interest,” Abdel said in written testimony. “The economic impact both directly and indirectly is substantial. These projects contribute to the economy through infrastructure investments, employment, and function as a catalyst to growth as industries become more digitally driven.”

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How would the tax break work?

“This exemption would be for sales tax for anything from land or site improvements, buildings, data center equipment, lease purchases, etc.,” said Sen. Stephen Owens, R-Hesston. “It’s important to note that these sales tax exemptions do have a timeline.”

The timeline depends on the size of the investment. The exemption lasts 15 years for an investment of at least $250 million investment, 30 years for an investment of $500,000 or more and 60 years for an investment that tops $1 billion.

“The reason for that extension is to ensure that these data centers can continue to be refreshed over time,” Owens said, such as investing in updated servers as technology changes.

Owens said this would put Kansas in line with 31 states that have similar sales tax breaks for data centers.

Owens said the tax breaks are offset by the taxes a data center would pay on its electric bill.

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“The sales tax that we would have forgone is actually outweigh by the sales tax we would collect on the utilities, and specifically the electricity that is being purchased,” he said. “So ultimately, this is a net benefit.”

Data center projects criticized

Sen. Mike Thompson, R-Shawnee, pointed to a 2016 study by Good Jobs First, a corporate subsidy watchdog. It reported that 11 data center megadeals received a total of more than $2 billion in incentives, translating to a cost of $1.95 million per job created.

A follow-up report in 2023 raised similar concerns, concluding: “The data we do have is clear: Such subsidies are indefensible in any state, given spiraling costs and paltry job creation.”

“If we’re serious about cutting the state budget and providing meaningful tax relief to all Kansans, we must stop picking winners and losers with targeted tax relief for a few,” Thompson said. “Instead, we should level the playing field for all our residents and businesses so they can share in the economic benefits.”

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Electric grid concerns

Sen. Kenny Titus, R-Manhattan, opposed the bill “because of concerns about our electric power grid’s ability to provide adequate power supply in the future for both the potential influx of data centers and other economic development opportunities that provide many more employment opportunities.”

Claeys, citing a Kansas Corporation Commission report, said that “large load customers like data centers actually help make electricity more affordable for everyone. Because these facilities provide substantial, predictable demand from large customers, they can plan and invest more efficiently in our power infrastructure.”

Electric utility monopoly Evergy made the same argument in written testimony.

Jason Alatidd is a Statehouse reporter for The Topeka Capital-Journal. He can be reached by email at jalatidd@gannett.com. Follow him on X @Jason_Alatidd.





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City Hall intruder fatally shot by employee in Lawrence, Kansas, officials say

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City Hall intruder fatally shot by employee in Lawrence, Kansas, officials say


An intruder was fatally shot by an armed city employee inside Lawrence City Hall in Kansas on Monday morning, officials said.

The 28-year-old man “forced his way into the building then broke through a door” on the fourth floor and into a secured area about 8 a.m., according to a police statement.

This led to an altercation with an armed city employee, Police Chief Rich Lockhart told reporters outside City Hall, about two miles north of the University of Kansas campus.

“During that altercation, the 28-year-old subject was shot and killed by the city employee,” the chief added.

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The intruder wasn’t immediately identified, and it wasn’t clear if he was armed.

Authorities didn’t immediately name the city employee or his job. But police did characterize the civil servant as “trained and authorized to carry a firearm.”

The fourth floor is home to the city manager, city attorney and budget manager.

Officials said they did not know why the man went to the fourth floor, and “it’s not someone that’s known to us,” Lockhart said.

City Hall was closed and should reopen Tuesday. A municipal court in the building won’t open again until Thursday.

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City Manager Craig Owens said he was grateful no city employees were hurt.

“I want to express my gratitude to the Lawrence, Kansas, Police Department work during the disturbing incident,” he said.



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IU football lands Kansas State transfer edge rusher Tobi Osunsanmi

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IU football lands Kansas State transfer edge rusher Tobi Osunsanmi


Indiana’s portal haul continued to grow Sunday as multiple outlets reported the addition of Kansas State edge rusher Tobi Osunsanmi.

Osunsanmi has played in 36 games over the last four years and has 8.5 sacks and 12.5 tackles for loss.  Most of that production came over the last two seasons.  He has a total of 47 QB pressures during his college career.

In 2025 he played in six games and had 20 tackles, 6.0 tackles for loss and 4.0 sacks.  He suffered a season-ending injury in October.

He saw action in all 13 games in 2024 as a reserve defensive end and on special teams, recording 19 tackles, 5.5 tackles for loss, 3.5 sacks and a forced fumble over 303 defensive snaps and 31 special teams plays.

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In 2023 he saw time in all 13 games as a reserve linebacker, a rush end on passing downs and on special teams.  He was tied for team-high honors with five tackles on kickoff coverage.

He played in four games in 2022 and preserved his redshirt.

The 6-foot-3 and 250-pound Osunsanmi has one year of eligibility remaining.

The Wichita, Kan. product (Wichita East H.S.) was regarded as the 232nd-best overall player in the nation for the Class of 2022 by 247Sports.

Osunsanmi will help fill the void left by outgoing edge rushers Mikail Kamara, Kellan Wyatt and Stephen Daley.

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More transfer portal information:

For complete coverage of IU football recruiting, GO HERE.

The Daily Hoosier –“Where Indiana fans assemble when they’re not at Assembly”

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Kansas football transfer portal tracker: Jan. 4 developments for KU

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Kansas football transfer portal tracker: Jan. 4 developments for KU


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LAWRENCE — The Division I transfer portal window for college football is open from Jan. 2 through Jan. 16, and that means Sunday is another chance for the Kansas football program to shape its roster.

The Jayhawks already gained one public addition earlier this offseason in Grand Valley State transfer Jibriel Conde — whose signing was announced Dec. 4. Conde, who is making the jump up from Division II, is a 247Sports-rated three-star defensive lineman in the portal and is listed by KU as a defensive tackle. On Saturday, a number of current Kansas players — including redshirt freshman quarterback Isaiah Marshall, redshirt sophomore wide receiver Keaton Kubecka and redshirt sophomore defensive tackle Blake Herold — also outlined in social media posts on X that they are locked in with the program for the 2026 season.

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Marshall is set to compete for the starting quarterback job next season. Kubecka has the chance to step up into a more significant role at wide receiver. Herold is in line to be a key part of Kansas’ defensive line.

Those positives, though, don’t outweigh the fact that there has been a sizable group of players who have revealed their intentions to transfer away. Looking overall, when it comes to those whose decisions became public before and after the portal opened, the significant names to know include redshirt senior safety Lyrik Rawls, redshirt junior linebacker Trey Lathan and freshman quarterback David McComb. Lathan led KU in tackles in 2025.

Check in here for more updates during this transfer portal window about a KU team that finished 5-7 during the 2025 season, with transfer ratings as outlined by 247Sports.

Kansas football transfer portal additions

Jibriel Conde (3-star defensive lineman from Grand Valley State) — KU lists him as a defensive tackle

Kansas football transfer portal departures

Joseph Sipp Jr. (linebacker)

Jacoby Davis (cornerback)

Dylan Brooks (defensive end)

Jaidyn Doss (wide receiver)

Carter Lavrusky (offensive lineman)

Trey Lathan (linebacker)

Tyler Mercer (offensive lineman)

Harry Stewart III (running back)

Caleb Redd (3-star edge) — KU lists him as a defensive end

Aundre Gibson (3-star cornerback)

David McComb (3-star quarterback)

Kene Anene (3-star interior offensive lineman) — KU lists him as an offensive lineman

Laquan Robinson (3-star safety)

Jameel Croft Jr. (3-star cornerback)

Logan Brantley (3-star linebacker)

Greydon Grimes (3-star offensive tackle) — KU lists him as an offensive lineman

Jon Jon Kamara (3-star linebacker)

Lyrik Rawls (3-star safety)

Damani Maxson (3-star safety)

Jaden Hamm (tight end)

Bryce Cohoon (wide receiver)

JaCorey Stewart (linebacker)

Johnny Thompson Jr. (running back)

Efren Jasso (punter)

Jordan Guskey covers University of Kansas Athletics at The Topeka Capital-Journal. He was the 2022 National Sports Media Association’s sportswriter of the year for the state of Kansas. Contact him at jmguskey@gannett.com or on Twitter at @JordanGuskey.

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