Kansas
Kansas is missing out on data center projects. Can sales tax breaks change that?
Amazon invests $10 billion in Ohio data centers to drive AI evolution
Amazon is adding to its major Midwest technology hub investment while helping to shape the future of artificial intelligence.
Straight Arrow News
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.”
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.”
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.
“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.”
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.
Kansas
Kansas City to reduce bus transit frequency, extended hours after World Cup matches end
KSHB 41 reporter Isabella Ledonne reports on stories in Overland Park, Johnson County and topics about government accountability. Share your story idea with Isabella.
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Saturday marks the final FIFA World Cup 26 match in Kansas City with Argentina set to meet Switzerland on the pitch at Kansas City Stadium.
Kansas City to reduce bus transit frequency, extended hours after World Cup
Public transportation received a big boost during the World Cup.
Johnson County launched JOCO United, and according to leaders, the airport drop and ride service that was implemented for the tournament will stick around.
“It has been very smooth every time,” Johnson County resident Mariah Wickham said. “I’ve been up and down so many times.”
Kansas City, Missouri, also bumped up its transit options, but not all of the those will be sticking around once the final whistle blows.
Tens of thousands of people have been using the airport link, streetcar and the buses to get around Kansas City. The city poured millions of dollars into building up its public transit infrastructure. The KCATA added more frequency to bus transit lines and the streetcar, pushing more fans to use public transportation during the tournament.
Brian Luton
“With the World Cup here, I was able to exercise using the streetcar more frequently and that was really fun,” Trish Luancing said. “It wold be nice to not have to drive everywhere and not have to worry about parking.”
But thousands have been relying on public transit for years, regardless of what event was in town.
“It’s been busier since the World Cup,” Jeffrice Jackson, a bus rider, said. “It’s been smooth sailing.”
The KCATA added streetcar ‘bus bridge’ links, extended bus service hours and increased frequency on East-West routes to link riders to the streetcar. It’s benefited both travelers and commuters.
Brian Luton
“[Service] has been more consistent with the World Cup than it was previously,” Jerry Breault, a rider said. “We were missing buses or routes because there weren’t enough drivers to drive that route.”
But the add-on’s stop on Sunday, July 12. If the transit authority can’t find more money, more than a dozen routes will be cut, potentially impacting more than 8,000 riders.
“It’s a little frustrating,” Breault said. “A lot of us rely on it just to get back and forth to work, to take care of our daily needs. It looks like we may be having to find alternatives and we’re not very happy about that.”
The KCATA will potentially suspend these weekday and weekend routes by September:
Weekday Route Eliminations:
- 9 – 9th Street, 365 average weekday ridership
- 21 – Cleveland Antioch, 512 average weekday ridership
- 23 – 23rd Street, 266 average weekday ridership
- 25 – Troost Local, 1,460 average weekday ridership
- 27 – 27th Street, 422 average weekday ridership
- 57 – Wornall, 411 average weekday ridership
- 71 – Prospect Local, 464 average weekday ridership
Weekend Route Eliminations:
- 9 – 9th Street, 349 average weekend ridership
- 21 – Cleveland Antioch, 312 average weekend ridership
- 23 – 23rd Street, 312 average weekend ridership
- 25 – Troost Local, 1,431 average weekend ridership
- 27 – 27th Street, 455 average weekend ridership
- 57 – Wornall, 595 average weekend ridership
- 71 – Prospect Local, 982 average weekend ridership
Bus fares came back earlier this summer to offset some of the operation costs, but many have reported issues with the free fare cards and eligibility.
“There’s always funding challenges with the KCATA,” Kansas City, Missouri, Mayor Quinton Lucas said. “How are the fare re-institutions working right now?”
Brian Luton
Mayor Lucas told KSHB 41 News Reporter Isabella Ledonne the transit improvements implemented for the World Cup “should continue,” and there are plans to talk with the KCATA commissioners to “make it work”.
“KCATA cannot just be Kansas City supported alone forever,” Mayor Lucas said. “Our approach and our preference is that the region got to see how much they would like [expanded service] during the World Cup. It was always intentional that if they liked it, maybe they would invest and maybe they would want this thing to go further.”
That’s good news to the thousands of daily riders.
Brian Luton
“I think it’s good because it helps people get around if they need to get around,” Jackson said.
The KCATA did not make themselves available for an interview.
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Kansas
Kansas Basketball Makes the Cut for 5-Star SF Demarcus Henry
One of the top prospects in the 2027 boys’ high school basketball recruiting class recently trimmed his list of suitors, and the Kansas Jayhawks find themselves firmly in the mix.
KU is one of eight schools to make the cut for 2027 five-star small forward Demarcus Henry, according to On3 National Basketball Reporter Joe Tipton. His list of eight includes some of the best programs in the country: Kansas, Ohio State, Kentucky, North Carolina, BYU, Arkansas, UConn, and Louisville.
The 6-foot-7 Charlotte, North Carolina, native is one of the best players in the 2027 class. He’s currently ranked as the No. 5 player overall and the No. 1 player at his position, according to the most recent On3.com 2027 player rankings.
As a junior this past year at Compass Prep High School in Chandler, Arizona, Henry averaged 15.5 points, 8.2 rebounds, and 2.2 steals per game as he helped lead his team to a 25-3 record.
He followed that up with an impressive performance at the NBPA Top 100 camp this summer, leading all attendees in scoring (20.0 points per game) and rebounding (9.3 rebounds per game). He was also a member of the 2026 USA Men’s U18 National Team that earned a silver medal at the FIBA U18 AmeriCup earlier this summer in León, Mexico.
When speaking about his game, Henry mentions his versatility and how he’s developed over the past year.
“I’m just very versatile,” Henry told Rivals in a previous interview. “I can play one through four and just help my teammates and hit shots and play defense. I watch a lot of KD (Kevin Durant) and Paul George. How they score it, and how they could shoot off the dribble, shoot off the catch. I’ve gotten tougher and just more aggressive when I transferred AZ Compass and just being able to get downhill, I feel like that’s really developed for me.”
When asked about what he’s looking for in a potential home at the college level, Henry says he wants to be challenged and grow his game for the NBA.
“What I’m looking for in school is someone that just pushes me to be better,” Henry said. “Help me grow into the person I know I can be and someone who will help me reach my potential. I want to play for a coach that will hold me accountable and help me make me uncomfortable and keep growing and keep getting better and just help me reach the NBA, which is my ultimate goal.”
Early Contenders
Right now the early favorite to land Henry may be the basketball program with the least amount of notoriety of the final eight schools – and that is Ohio State.
Henry has a lot of familial ties to the university as his older brother Chris Henry Jr. is a five-star incoming freshman wide receiver for the Buckeyes football team this year, and his older sister Seini Henry is a talented women’s basketball player at Ohio State.
He’s already taken an unofficial visit to the school and has also taken an unofficial visit to BYU. Thus far, they are the only schools to have received a visit.
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Kansas
Kansas City Royals news: MLB draft still coming into focus
The Royals have been linked to shortstop Jacob Lombard out of Gulliver Prep (Fla.) — if he makes it that far — left-hander Gio Rojas out of Stoneman Douglas (Fla.) HS, outfielder Eric Booth Jr. out of Oak Grove (Fla.) HS, UC Santa Barbara right-hander Jackson Flora and Georgia Tech outfielder Drew Burress, among others. Maybe they shake up the board and go with Huntington Beach (Calif.) HS left-hander/outfielder Jacob Grindlinger, who is just 17 years old after reclassifying for this year’s Draft and has legitimate upside as a two-way player. Grindlinger is No. 16 on MLB Pipeline’s Top 250 Draft prospects list and is rising on boards as Draft day nears.
Prep players usually mean a lot of upside but with more risk, while college players bring a higher floor and more experience — often with a chance to move quickly. Over the full Draft, the Royals are going to value both.
“There’s a good mix of high school and college,” Bridges said. “To tell you the truth, our range is pretty broad. There’s a clear-cut four players, five players in this Draft, and then believe it or not, where we’re picking, you can go a number of different directions. So we have a pretty good balance of what we’re looking at, both high school and college.”
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