As Nebraska towns increasingly halt new data center projects, Kearney is taking a different approach. The city of 33,000 has passed a zoning ordinance to attract these facilities, addressing local concerns about noise, water use, and energy consumption. This move positions Kearney as a pioneer in the state, balancing growth with community protection.
Kearney’s first major project under these new rules is a multiphase data center campus called Tech One Crossing. When complete, it will consume 368 megawatts of power—more than the Tri-Cities combined. However, the identity of its future tenants remains undisclosed due to non-disclosure agreements. The project is being developed by Worldwide Mission Critical, a Virginia-based company with experience in similar facilities.
A Strategic Bet on Data Centers
Kearney’s move comes as at least 12 Nebraska counties have imposed moratoriums on new data center developments. City Manager Brenda Jensen said Kearney aims to balance growth with community protection. “We’re pro-growth, pro-development, but at the end of the day, we want to make sure that we’re protecting our community,” Jensen said. This strategy contrasts sharply with the moratoriums in other counties, reflecting Kearney’s proactive stance.
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The city has been pursuing a major data center project since 2010, when it learned a large company was scouting locations. Kearney acquired 112 acres of land northeast of town, hoping to attract investment and white-collar jobs. However, the deal went to Altoona, Iowa, which landed a Facebook data center. Despite this setback, Kearney remained committed to its vision.
Kearney’s persistence paid off in 2019 when it granted 11 acres to Compute North for a 100-megawatt bitcoin mine. Despite initial success, Compute North declared bankruptcy and sold the site, which is now operated by Marathon Digital Holdings. Now, Marathon has struck a deal with Mission Critical Worldwide to pass off its 100 megawatts of power from the bitcoin mine to Tech One Crossing. Across four years, the company plans to more than triple its electric bill, which will give Kearney a huge boost in tax revenue.
Community Concerns and New Regulations
Some residents, like Josh Lillyman, remain cautious. Lillyman, a local government contractor, discovered a constant humming noise from a nearby cryptocurrency mine. He advocated for stricter regulations, fearing unchecked expansion could harm nearby residents, including those in a veterans home. Lillyman’s concerns were further heightened when a company announced plans for a smaller, five-megawatt data center in Kearney’s tech park, prompting him to take action.
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Lillyman’s efforts led to the formation of a 10-person citizen advisory committee that helped draft the new zoning ordinance. The ordinance places restrictions on noise, water consumption, and energy use. “It’ll just be an ongoing battle to ensure that they abide by all the codes we put in place,” Lillyman said. “And that’ll be the community’s job to hold them accountable.”
A Long-Awaited Opportunity
Kearney’s pursuit of data centers dates back to 2010, when it learned a major company was scouting locations. However, the deal went to Altoona, Iowa, which landed a Facebook data center. “The best way I can say it is (Kearney) got second in the Super Bowl,” said Craig Bennett, a consulting engineer with Miller & Associates. “But we made it to the Super Bowl.” This early setback fueled Kearney’s determination to succeed in the data center industry.
Balancing Growth and Community Concerns
The new zoning ordinance aims to balance growth with community protection. It includes provisions to address noise, water use, and energy consumption. “So the City of Kearney has been planning for this for a long time,” Bennett said. “It may be looked at by some that the zoning regulations are new because we want a data center, but they’re just tighter restrictions on the existing zoning regulations that they have in place.” These measures ensure that development proceeds responsibly, reflecting Kearney’s commitment to both growth and community well-being.