Kansas City Data Center Gets $100M Clean Energy Loan

An empty newspaper printing press in Kansas City's Crossroads district is getting a second life as one of America's first data centers powered by clean energy financing.

Kansas City-based Patmos secured a $100 million clean energy loan to retrofit the former Kansas City Star building at 1601 McGee. The loan, the largest of its kind in Missouri, will fund an advanced cooling system that cuts electricity use dramatically over the next 20 years.

Joe Morgan, Patmos's chief operating officer, says the company chose to reuse the 400,000-square-foot building instead of constructing new. That approach costs less, finishes faster, and reduces environmental impact from the start.

The financing comes through C-PACE loans, which specifically fund energy-saving upgrades. Property owners apply through Missouri's Show Me PACE board, receive funding from private lenders, and repay through their property tax bills.

Josh Campbell, executive director of Missouri Energy Initiative, hopes these loans will push more tech companies toward sustainability. "My hope is that PACE loans can put that on their balance sheet, in their business plan, that they want to be more energy efficient," he said.

The building will be mixed-use, with the data center occupying just a portion. The rest becomes office space, event venues, and coworking areas where three companies already signed leases.

Patmos designed its ventilation to avoid impacting nearby restaurants on Oak Street. Morgan says being a good neighbor matters as much as being energy efficient.

The Ripple Effect

This loan could reshape how America builds tech infrastructure. As data centers multiply nationwide to power AI and cloud computing, energy demand is projected to double by 2030 according to the International Energy Agency.

Campbell believes smaller data centers will increasingly use these loans as the market grows. While massive facilities from Google and Meta likely won't qualify, mid-sized projects can use this financing tool to lower their environmental footprint.

The approach addresses growing concerns about data centers straining local power grids and driving up utility costs. Missouri and Kansas recently approved special energy tariffs for large data centers to protect residential customers from rate increases.

By making energy efficiency financially attractive through favorable loan terms, the program gives developers a business reason to choose sustainability. Properties last longer, operate cheaper, and demand less power than they would without these upgrades.

As communities nationwide grapple with balancing tech growth and environmental protection, Kansas City's experiment offers a model where both sides can win.