Tax Abatements for Data Centers

Kansas has passed legislation to make data center developers exempt from certain kinds of taxes as a measure to attract large data center development. While that might be fine at the state level, small communities are the ones that will be the most impacted.

SB 98 Data Center Sales Tax Exemption
Kansas Senate Bill 98 (SB98), enacted in 2025, establishes a 20-year state and local tax exemption designed to attract large-scale, permanent data center developments to the State of Kansas. 

A tax exemption means that a data center will not contribute any tax dollars at all on the hundreds of millions of dollars of materials needed for development. Since most data centers only employ a few dozen people, there will be no large influx of high-paid jobs for the area. The typical projected lifespan of a large data center is 10-15 years which means that data centers are likely to be abandoned before they ever bring any tax revenue.

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