Independence Gazette

At the Monday, May 4th city council meeting, the council approved using over 13 million dollars from the IPL fund balance to install a switchyard to power the data center. As explained by IPL Director Joe Hegendeffer, these funds will be repaid within 6 months into the initial one year contract for the power purchase agreements.

Previously, the city had to enter into PPA/ESA to fill the gap from when the data center goes online, until they’re able to start generating their own power. These contracts cover October 2026 – October 2027.

Nebius is paying for all the capacity, regardless if they use it or not. From those payments, will come an estimated 3.5 Million dollars in PILOT Fees, that money will go directly to the city’s general fund.

At Monday’s meeting, newly seated At-Large Councilmember Cody Atkinson used the opportunity to highlight all the places the city could potentially use these funds. From bus service, to the city’s historic sites, to mental health services, he named what seems like an endless list of needs the city has.

Mayor King had city staff explain the timeline for repayment, which is approximately 6 months, and reiterated that Nebius is contractually obligated to make the payments regardless if they use any power.

The council would go on to cast a unanimous 7-0 vote to approve the multimillion dollar switch yard for the data center project.