TAX BREAK WORTH UP TO $25B

The tech giant Google is considering a $600 million data center project in Kansas City, Missouri, with approval from local authorities.

As reported by The Kansas City Star, the Port Authority of Kansas City’s Board of Commissioners has just approved a resolution authorizing the board to issue a $600m bond for Google to build the first phase of its data center, if the company decides to go ahead with the project.

The proposed Google Kansas facility is codenamed “Project Shale”. If the project is continued, the Kansas City Port Authority could utilize Chapter 68 bonds which would grant Google a 35-year property tax break worth up to $25 billion as the company continues to expand and invest in the facility.

According to the Port Authority commissioner Dan Fowler, Google plans to build up to six phases at the proposed site.

“This is a win-win scenario that will help KC move forward for many years to come. The City had the foresight to invest in N. Arlington infrastructure, and now it is paying off,” Fowler adds.

Google will however, make payments to the Port Authority In lieu of taxes, which would be distributed between the North Kansas City School District, the city, Clay County and other taxing jurisdictions.

The company would also pay towards improving city infrastructure like the former AK Steel Corp mill, which the Port Authority hopes to turn into a freight facility.

The Kansas data center is expected to bring in $4 million in utility taxes annually.

“Google is considering acquiring property in Kansas City, MO, and while we do not have a confirmed timeline for development on this site, we want to ensure that we have the option to further grow should our business demand it,” said Andrew Silvestri, Google’s head of data center public policy and community development.

Although Google is yet to complete acquisition of the 80 acre of land in which it intends to build the new facility, it is however reported that final negotiations are currently underway. This patch of land is on the North Arlington Business Park, of which Google is expected to be the first tenant.