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ARTICLE · 07 AUGUST 2025

Kansas Enacts Data Center Incentive Program

Kansas has established a significant new economic development initiative through the Data Center Incentive Program — outlined in Senate Bill 98 (SB-98) — which was signed into law by Gov.

United StatesStrategy

Kansas has established a significant new economic development initiative through the Data Center Incentive Program — outlined in Senate Bill 98 (SB-98) — which was signed into law by Gov. Laura Kelly on April 24, 2025, and becomes effective July 1, 2025. This legislation represents Kansas's strategic move to compete nationally for hyperscale data center investment by eliminating sales and use tax barriers on major digital infrastructure projects. The program replaces an earlier proposal (SB-51) and provides a standardized 20-year tax exemption framework for qualifying data centers.

Key Takeaways

  • 100% sales and use tax exemption eliminates major cost barriers. The comprehensive 20-year exemption on construction, equipment, and services addresses the primary tax burden for data center developments.

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