Nebius Advances Major US Data Center Project Amid Local Scrutiny

Nebius gains city approval for a 1.2GW AI data center campus in Missouri with $650M tax deal, but a public referendum could decide its fate.

Nebius has cleared a significant administrative hurdle for its planned artificial intelligence data center campus in Independence, Missouri. The city council has granted approval for a substantial infrastructure project alongside a tax incentive package, allowing detailed planning to proceed. The project's immediate future, however, hinges on a potential public referendum, which local petitioners are attempting to trigger.

Project Scale and Economic Impact

The approved development, described by CEO Arkady Volozh as the company's largest US undertaking to date, involves constructing an "AI Factory" with a capacity of up to 1.2 gigawatts. The campus will span approximately 400 acres. Initial construction is expected to generate around 1,200 jobs, with 130 permanent high-tech positions slated for operations once the facility is complete.

The financial framework is clearly defined. Over a 20-year period, Nebius has committed to paying the municipality roughly $650 million in lieu of standard property taxes. This structured payment plan forms the core of the approved incentives.

Local Opposition and the Path to a Public Vote

The city council passed the tax incentive measure by a vote of 5 to 2. Following the decision, residents promptly launched a petition drive to force a public vote on the agreement, as reported by KCTV5.

For a referendum to be mandated, organizers must gather signatures from 5% of the city's registered voters within a 30-day window. Reports indicate the petition already had over 100 signatures submitted at its inception.

Industry Context and Capital Intensity

This initiative aligns with a global surge in demand for gigawatt-scale computing infrastructure. Recent industry developments underscore this trend, including a multi-year agreement between Meta Platforms and AMD for 6 gigawatts of computing power. Furthermore, Alphabet raised $20 billion through a bond offering partly to fund infrastructure expenditures, which could total up to $185 billion by 2026.

The capital requirements for such projects are immense. According to Business Daily Africa, building modern AI-capable data centers costs an estimated $10 to $20 million per megawatt. Scaling this to a 1.2-gigawatt target illustrates the significant investment needed to develop a site of this magnitude.

All attention now turns to the 30-day petition deadline. If organizers successfully reach the 5% signature threshold, the final decision on the tax agreement will be placed on a ballot for the broader community to decide.