De Soto resets data-centre water deal as cooling shift cuts demand

De Soto resets data-centre water deal as cooling shift cuts demandDe Soto City Council approved a second supplement to its Mount Sunflower development agreement after the proposed data-centre campus reduced its anticipated water demand from 6 million gallons per day to around 50,000 gallons per day. The revised deal removes large-scale water and wastewater upgrades, but retains a 99th Street water-main extension and adds up to $20 million in community funding alongside raw-water investments.

The developer's move to fully closed-loop, air-cooled technology cut anticipated campus water demand from 6mgd to around 50,000gpd, according to city staff.

The change eliminates the need for previously contemplated raw-water transmission, treatment-capacity expansion, major water-main work and an industrial wastewater treatment facility that had been associated with approximately $237 million of improvements.

The supplement includes about $9.44 million for a Kansas River raw-water crossing and a new well, plus a $20 million community betterment fund; $2 million of that fund is triggered by Phase 1 permits and the remaining $18 million by Phase 2 milestones.

Council also approved a $2.085 million guaranteed maximum price allowing Garney Construction to procure pipe and valves for the 24-inch 99th Street water main, with costs covered by the developer.

Council tabled a resolution initiating eminent-domain proceedings for easements on the 99th Street main route until 15 October, pending further direct communication with landowners.

De Soto City Council has approved a revised water-infrastructure arrangement for the Mount Sunflower data-centre development, after the developer substantially reduced its projected water use through a switch to closed-loop, air-cooled technology. City staff said the campus had originally been expected to require about 6 million gallons per day, driving a programme of roughly $237 million in water-system work. That programme had included raw-water systems and transmission, expanded treatment capacity and water-main extensions. An industrial wastewater treatment facility had also been contemplated. Under Supplement No. 2 to the development agreement, staff said the project’s demand has fallen to around 50,000 gallons per day, a level that does not require significant upgrades to the city’s water-treatment system. During council discussion, the mayor also described Phase 1 and Phase 2 water needs as 150,000 gallons per day each, while citing wastewater demand of 50,000 gallons per day. The council approved the supplement after amending Phase 2 payment language in the community betterment fund. References to data-centre buildings 3 and 4 were removed so that the relevant funding triggers apply to Phase 2 more generally. The agreement retains developer funding of about $9.44 million for two raw-water projects: a new crossing beneath the Kansas River and a new well. The river crossing was described as a resilience measure because approximately 80% of De Soto’s water comes from wells north of the river. Staff said a failure of the existing crossing could interrupt supply to the city. The developer, referred to during the meeting as Beall, will also provide up to $20 million for a community betterment fund covering infrastructure, downtown redevelopment and other city-agreed projects. Only $2 million is triggered within 30 days of Phase 1 data-centre building permits; the remaining $18 million is tied to Phase 2 site-plan approval, building permits and certificate-of-occupancy milestones. A developer representative said Phase 2 construction permits are currently planned for the second half of 2027, with a first certificate of occupancy in the second half of 2028, subject to approvals, construction and design-review timelines. The 99th Street treated-water main remains a city obligation under the original development agreement, with service required by June 2027. Council subsequently approved a $2,085,474 guaranteed maximum price for Garney Construction to procure pipe and valves for the 24-inch main between Sunflower and Edgerton Road. The city said the developer will cover the cost. The line is intended to support the development and other properties in the area, and will ultimately connect at a wholesale water-supply point with Rural Water District 7. However, council postponed Resolution 2103, which would begin the eminent-domain process for easements required for the main. Staff said four parcels owned by three owners are involved and that appraisals and offers had been issued. Council members sought additional direct engagement with landowners before proceeding, voting to revisit the resolution on 15 October.