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Osawatomie weighs a data center proposal that could reshape local taxes and public services

Osawatomie officials are considering a proposal for a mid-sized data center they say could provide major new revenue to a city struggling with an eroding tax base after the decline of railroad-era jobs. City Manager Bret Glendenning frames the plan as a rare opportunity to fund long-delayed priorities such as road work and other basic services.

Illustration of Osawatomie residents and city infrastructure near a modern data center on the edge of town

The project is being financed by MDH Partners, an Atlanta firm. Developers describe it as a gradual buildout over at least six years, with up to seven buildings expected to cover as much as 200 football fields and employ about 90 people. The city’s potential return would include fees tied to up to 500 megawatts of power use, plus sales and property taxes—along with an agreement to waive half of property taxes for 10 years.

Supporters and developers also describe how the facility would connect locally, including using the city water treatment plant for cooling with a supply of 80,000 gallons per day. Some residents, however, remain opposed. At a city council meeting that stretched for four hours, people raised concerns about water supply, electricity needs, possible noise impacts for a state mental hospital in town, and fears that the data center could support license-plate camera data use.

The Osawatomie Planning Commission is reviewing whether to recommend the proposal to the City Council, and the outcome could determine how far the plan advances.