Data Centers &
Emerging Industries
in El Dorado
What It Means for Our Community
This site is intended to provide clear, factual information as El Dorado prepares for potential future opportunities in emerging industries, including data centers.
No specific project is being considered or approved through this effort. Instead, the focus is on making sure the community has the right information, standards, and expectations in place so that any future opportunities can be evaluated thoughtfully and responsibly.
Why this site exists: Created by El Dorado Inc. to help residents understand a complex topic using publicly available information.
The Key Points
Here's what you need to know. Click any topic to explore the details.
Tax Abatements & Fiscal Impact
The Short Version
- El Dorado's property tax abatement policy allows abating of property taxes for up to 10 years. Abatement terms are negotiated based on project scope and go through a community benefits agreement process.
- After abatements end, the facility pays full property taxes — which could grow the tax base and, if budgets remain stable, reduce mill levy rates for everyone.
- Separately, franchise fees from electricity sales begin immediately — with no abatement period. A 100MW data center could more than triple El Dorado's current ~$1M/year in Evergy franchise fees from day one.
- The tradeoff is real: Near-term reduction in property tax revenue in exchange for a significant long-term taxpayer — plus immediate franchise fee gains.
Power, Water & Infrastructure
The Short Version
Electric Bills: No. By Kansas law, data centers pay the full cost of their power usage with no discounted rates. Kansas put new protections in place in November 2025 requiring large users to pay for their own transmission lines and infrastructure.
Water: Modern large-scale facilities typically use closed-loop cooling systems that recirculate water. El Dorado has 10 million gallons per day of industrial water capacity available.
Jobs: Data centers create skilled, well-paid permanent positions — typically 30–150 jobs per facility.
Community Concerns & Safety
The Short Version
Noise: Modern acoustic engineering has made data centers far quieter than most people expect. Independent noise studies and enforceable limits should be part of any development agreement.
Emissions: Backup generators run only during emergencies and scheduled monthly tests. Modern tier-4 engines meet strict EPA standards.
Fire Risk: Modern facilities are built with dedicated suppression systems under rigorous UL 9540A and NFPA 855 standards.
Property Values: A 2025 George Mason University study found homes near data centers sell at higher prices.
What Does a Data Center Actually Look Like?
Before forming an opinion, it helps to see one. Linus Tech Tips toured an Equinix facility — one of the world's largest operators.
Watch the Tour on YouTube ↗Balanced. Transparent. Updated.
Our goal is to present facts clearly and help you understand the tradeoffs.
Balanced
We present both potential benefits and legitimate concerns.
Transparent
We show our assumptions and acknowledge what we don't know.
Updated
We'll add new information as it becomes available.
Have Questions?
Browse our frequently asked questions or learn more about this community information effort.
Large-scale data center investments are being discussed across Kansas. Understanding why — and what it could mean for El Dorado — starts with understanding the broader context.
Data Centers Are Coming to Kansas
Kansas has become a target for data center investment due to its central location, available land, relatively low natural disaster risk, and access to power infrastructure. Several counties across the state are evaluating proposals or have already approved projects.
- Major tech companies are expanding data center capacity nationwide
- Kansas offers geographic and infrastructure advantages
- Multiple Kansas communities are being approached with proposals
Some Communities Have Paused or Rejected Projects
Not every community has said yes. Some Kansas counties have paused data center discussions or rejected proposals over concerns about power usage, water consumption, tax abatements, or community impact. These decisions highlight the importance of careful evaluation.
- Concerns about long-term utility impacts
- Questions about the balance of tax abatements vs. community benefit
- Desire for more information before making decisions
El Dorado Is Studying the Issue Proactively
Rather than waiting for a formal proposal and reacting under pressure, El Dorado and Butler County have the opportunity to study the issue now — understanding both the potential benefits and the real concerns before any commitments are made.
- Time to gather facts and understand the full picture — including things that could go wrong
- Opportunity to establish community priorities and red lines in advance
- Chance to learn from communities that said yes, and from those that said no
This Is Not a Decision That Can Be Undone
A major industrial facility, once built, will shape El Dorado for decades. The goal of this resource is to make sure that when our community faces this decision, every resident — whether supportive, skeptical, or undecided — has access to honest, complete information to participate meaningfully in the conversation.
Understanding El Dorado's tax abatement policy, what it means for the community, and how a major data center investment could affect the local tax base over time.
El Dorado's Property Tax Abatement Policy
The City of El Dorado's policy provides property tax abatements scaled to the level of capital investment and job creation.
For a large data center investment — potentially exceeding $1 billion — the actual abatement percentage is negotiated based on the project's scope. Projects of this scale go through a community benefits agreement process.
For purposes of illustration, we use a hypothetical 85% abatement. The abatement period typically runs up to 10 years, after which the facility pays full property taxes.
Note: Property tax on a data center is assessed on real property (land and buildings), not on servers and equipment. The taxable assessed value may be significantly lower than the total capital investment.
What an Abatement Is — and Isn't
A tax abatement is not a reduction in existing funding. Schools, services, and infrastructure continue to be funded by existing taxpayers just as before. The abatement simply means the new facility phases into its full tax contribution over time rather than starting at 100% on day one.
Hypothetical Tax Revenue Illustration
For context, the City of El Dorado currently generates approximately $7 million per year in total property tax revenue.
The following uses hypothetical numbers for illustration only. Actual assessed values, mill levies, and abatement terms would be established through formal agreements.
Hypothetical: 1 Million SQ FT Facility Additional Tax Revenue
$200M Estimated Appraised Value, $50M assessed building value, 164 mill levy, 85% abatement
How Does That Compare to Homes?
Using El Dorado's median home value of approximately $150,000 and the same 164 mill levy:
El Dorado has approximately 11,000 residents and around 4,300 housing units. A single data center could contribute tax revenue equivalent to a fourth of the city's entire residential tax base — without the corresponding demand for schools, roads, or city services.
What This Could Mean for Homeowners
During abatement (Years 1–10): The facility pays a reduced share — approximately 15%. Existing funding for schools, roads, and services is unaffected.
After abatement (Year 11+): The data center becomes a major contributor. If that new revenue is larger than budget increases, it could help stabilize or reduce mill levy rates for all property owners.
The honest answer: Tax abatements are a calculated investment in long-term economic development. The community accepts a reduced contribution in the early years in exchange for a significant long-term taxpayer.
Franchise Fees: Revenue from Day One
The City of El Dorado currently collects approximately $1 million per year in franchise fees from Evergy. These fees are a percentage of utility revenue — and a data center would dramatically expand that revenue base.
Franchise Fee Impact: 100MW Data Center
100MW is considered a relatively small data center by hyperscaler standards. Larger facilities would generate proportionally higher franchise fees.
Franchise fees are not subject to abatement. They flow to the city from the first day of operation and scale directly with the facility's power consumption.
Data centers have significant infrastructure requirements. Understanding how these are managed — and what safeguards exist — is essential for informed community discussion.
Electric Power
Concerns About Electric Bill Increases
In some states, data center development has contributed to higher electric bills for residents when infrastructure costs were spread across all customers. Kansas has taken steps to address this:
- Kansas law requires cost responsibility: Data centers pay the full cost of their power usage with no discounted electricity rates.
- Kansas protections (Nov 2025): The Kansas Corporation Commission approved new rules requiring large power users to pay for their own transmission lines and operate under separate rate structures from residential customers.
- Federal proposal (Jan 2026): The Trump administration proposed policies requiring data centers to fund new power generation, specifically to protect residential ratepayers.
Grid Impact
Before any major load is added to the grid, utilities conduct interconnection studies to assess capacity and determine required upgrades. For projects of this scale, those upgrades are required to be funded by the project developer.
Water Use
Closed-Loop Cooling Systems
Modern large-scale data centers most commonly use closed-loop cooling systems. These systems recirculate the same water through the cooling loop continuously, rather than drawing fresh water on every cycle.
What Happens to the Water
Water discharged from the cooling system is properly treated — similar to how a municipal wastewater treatment plant operates — and is then either safely released or made available for reuse in other industrial applications.
El Dorado's Unique Water Position
El Dorado has a water system unusually well-suited for evaluating large industrial proposals:
- Firm water supply: Approximately 10 million gallons per day available for industrial use
- Reservoir-based: El Dorado Reservoir provides long-term planning certainty
- Direct control: The city is the sole owner of its water system and contracts directly with the U.S. Army Corps of Engineers
- Revenue opportunity: Water sales to industrial users create a revenue stream for the city that can support local services and infrastructure
- Capacity study: The City completed a feasibility study with Black & Veatch confirming the ability to sell an additional 8.5 billion gallons per year beyond current sales
Infrastructure Footprint
A Proven Track Record
Ashburn, Virginia is the data center capital of the world, home to 100–200 facilities. It is one of the most desirable communities in the country — not despite the data centers, but in part because of the infrastructure investment they brought.
The industry's track record across thousands of operational facilities demonstrates that — with proper planning — these concerns are manageable and the benefits are real.
Key Safeguards
Utility Coordination
Grid studies and capacity planning before approval
Cost Allocation
Large users typically pay for their infrastructure needs
Water Planning
Usage must fit within long-term community water plans
Regulatory Oversight
State and federal agencies review major utility changes
Want to See Inside a Data Center?
Linus Tech Tips produced an unbiased tour of an Equinix data center. It's a good way to understand what these facilities actually look like.
Watch the Tour on YouTube ↗Residents have raised serious, legitimate concerns about noise, safety, emissions, and quality of life — and those concerns deserve honest answers.
Water Use & Treatment
The Concern: Water usage is a topic worth understanding, and El Dorado is well positioned to address it.
What We Found:
- El Dorado has approximately 10 million gallons per day of industrial water capacity backed by El Dorado Reservoir
- Modern cooling systems increasingly use closed-loop designs that recirculate water, reducing fresh water consumption
- Water discharged from the cooling loop is properly treated before release
- Treated discharge can be safely released or made available for reuse
- This infrastructure was designed with large industrial users in mind
Specific water usage caps, treatment standards, and discharge requirements should be written into the development agreement as binding terms before any project is approved.
Noise from Cooling Systems & Generators
The Concern: Large HVAC systems and backup generators can produce noise, and that's a fair thing to ask about.
What We Found:
- Cooling equipment runs 24/7; modern acoustic engineering has made significant advances in reducing this
- Generator testing (typically monthly) adds brief noise events that are scheduled and infrequent
- Sound barriers, acoustic enclosures, and vegetation buffers are standard mitigation tools
- Thoughtful site selection — distance from residential areas — is the single most effective safeguard
- Many communities near established data centers report facilities are barely noticeable day-to-day
Independent noise impact studies should be completed before approval, with enforceable decibel limits at property lines built into the development agreement.
Read what Northern Virginia residents say on Reddit ↗Backup Generators & Air Quality
The Concern: Large facilities maintain diesel generators as backup power. The answers are more reassuring than the concern might suggest.
What We Found:
- Backup generators exist for emergencies and scheduled monthly tests — they are not running continuously
- Generators must meet EPA emission standards
- Modern tier-4 engines produce dramatically lower emissions than older models
- Data centers in Ashburn, VA have operated without measurable community air quality impacts for decades
Air quality monitoring during construction and operation can be made a binding requirement in the development agreement.
Fire Risk from Batteries & Equipment
The Concern: Questions about battery fire safety are completely reasonable — and the industry has invested heavily in exactly this problem.
What We Found:
- NFPA 855 and UL 9540A set rigorous safety standards — not optional guidelines but enforceable code requirements
- Modern facilities include dedicated fire suppression systems designed specifically for battery fires
- Data center operators work closely with local fire departments before opening
- The industry's track record across thousands of facilities worldwide demonstrates that proper engineering controls work
Fire safety requirements — including on-site suppression systems, emergency response planning, and fire department coordination — should be written into the development agreement before approval.
Visual Impact & Property Values
The Concern: Questions about facility appearance and property values are completely understandable.
What We Found:
- Ashburn, Virginia — the data center capital of the world with 100–200 facilities — is one of the most desirable places to live in the country
- A 2025 George Mason University study found homes near data centers sell at higher prices
- Modern data centers are often built with landscaping, setbacks, and architectural standards
- Lighting can be designed to be directional and shielded — a standard requirement in well-written development agreements
Architectural standards, landscaping requirements, and lighting restrictions should be written into zoning and development agreements.
The Bottom Line: Questions Are Good. The Answers Are Reassuring.
Asking hard questions before major decisions is exactly what engaged community members should do.
Data centers have been operating safely in communities across the United States for decades. Ashburn, Virginia has more data centers per square mile than anywhere on earth — and it remains a thriving, sought-after community.
El Dorado is not new to evaluating major industry. The local refinery has been part of this community for decades, employs approximately 400 workers, and has provided long-term economic benefit while operating alongside our community. El Dorado knows how to ask the right questions.
See What a Data Center Actually Looks Like
Linus Tech Tips toured an Equinix facility — a useful, unbiased reference for understanding what these facilities look like.
Watch the Tour on YouTube ↗This website is created by El Dorado Inc. to support informed public dialogue about potential data center development in El Dorado and Butler County.
Our Purpose
Major community decisions work best when residents have access to clear, balanced information. This website was created to:
- Explain complex topics in plain language
- Present both opportunities and concerns honestly
- Provide a shared reference for community conversations
- Acknowledge uncertainty and update as new information emerges
What This Site Is Not
✕ Not affiliated with any developer. This resource is created by El Dorado Inc., not by a data center developer.
✕ Not a government website. While we use publicly available information, this is not an official government resource.
Our Principles
Balanced
We try to present both potential benefits and legitimate concerns.
Transparent
We clearly distinguish between known facts, assumptions, and open questions.
Community-Focused
Our goal is to inform our community of the potential impact of a data center.
This website uses publicly available information and makes reasonable assumptions where noted. It is not legal, financial, or professional advice. For official information, please contact your local government representatives.