KANSAS CITY, Mo., March 5, 2026, 04:11 CST
- Nebius Group said it cleared a key local hurdle for a planned AI data-center campus in Independence, Missouri, with potential capacity up to 1.2 gigawatts
- Local officials approved a Chapter 100 incentive package that includes long-term tax abatements and payments in lieu of taxes
- NBIS shares rose about 13% in premarket trading
Nebius Group N.V. said it secured city approval for a Chapter 100 incentive plan tied to a planned “AI factory” campus in Independence, Missouri, a move that pushed its Nasdaq-listed shares up about 13% in premarket trading on Thursday. 1
The decision matters now because access to electricity and permits has become a choke point for data-center projects built for artificial intelligence. A gigawatt is a measure of power demand; at this scale, the project would sit in the top tier of U.S. builds aimed at AI computing.
Nebius is part of a new crop of so-called “neocloud” firms that rent out Nvidia graphics processors used to train and run AI models, a market dominated by bigger cloud groups and crowded with specialists such as CoreWeave. The Amsterdam-based company has been spending heavily to add chips and sites as customers race to lock up capacity. 2
The company said the Independence campus would cover about 400 acres and could support up to 1.2 gigawatts of power. It estimated about 1,200 construction jobs and roughly 130 permanent high-tech roles once fully operational. 3
Independence approved the package on a 5-2 vote on Monday, local reporting showed. Chapter 100 is a Missouri development incentive that allows cities to issue industrial development bonds and grant tax abatements, including by taking title to a project for tax purposes. 4
More than 60 people signed up to speak during a roughly four-hour hearing, KMBC reported. The proposed facility would span more than 2 million square feet and require electricity comparable to about 500,000 homes, the station said. 5
KCUR reported the 90% abatement would amount to $6.26 billion in tax breaks over 20 years, tied to property and equipment valued at up to $150.6 billion. In exchange, Nebius would pay about $651.5 million in payments in lieu of taxes, or PILOTs, which replace property taxes when a project is exempt; the interim city manager also projected roughly $30 million a year from city-owned utility use. 6
Nebius CEO Arkady Volozh said, “This is our first project of this scale, but not the last.” John Sutter, the company’s vice president for U.S. public affairs, told residents the firm meant to earn trust “not through promises, but through results.” 7
Local building trades have pressed hard for the project, framing it as a pipeline of work and apprenticeship slots. “It’s a once-in-a-lifetime investment in this area,” said Bo Moreno, business manager for International Brotherhood of Electrical Workers Local 124. 8
Power and water remain the flash points. KSHB reported the site is expected to use about 800 megawatts of energy — around three times what Independence currently generates — and that Nebius has said it will source power from a separate plant funded outside the city utility; Missouri Attorney General Catherine Hanaway said the state was watching “to see if misrepresentations are being made” about consumption. 9
But the vote may not end the fight. Opponents have talked about forcing a referendum and have raised concerns about grid strain, environmental impact and whether the promised jobs and payments match the size of the tax breaks. Any delay in permits, construction, financing or chip supply would also push out the schedule and test customer demand.
Nebius Group, formerly Yandex N.V., renamed itself after selling its Russia-based assets in 2024 and pivoted toward AI infrastructure under founder Arkady Volozh. 10
The Missouri approval adds to a wider buildout as the company tries to lock in power and sites ahead of demand. Nebius last month also laid out plans for a 240-megawatt data center near Lille, France, as it expands its footprint in Europe and the United States. 11
