HyperDataGrid Data Center, Parsons, Kansas

HyperDataGrid, a Texas company, wants to buy at least 20 acres in the Tolen Creek Industrial Park at Parsons, in Labette County, Kansas, for what the city calls a micro data center. The company says it can bring a 20 megawatt facility online within 12 months.

A six-month purchase option, with a possible six-month extension, went to a City Commission work session on July 2, 2026 and the regular meeting on July 6. The commission approved the option, which gives the company time for due diligence; building the data center would need a separate approval. During the option the company is to study utility availability, review land use and survey the site, while the land price and the exact location in the park were still being discussed. Clay Roberts of HyperDataGrid told commissioners the company intends to be "as upfront and as transparent as we possibly can."

Two water options were put forward, one using very little water and the other up to 50,000 gallons a day as the project grows. "50,000 gallons would take just about an hour a day to make with our water plant at its current operating status and in no way limits water production," said City Utilities Director Derek Clevenger. The Parsons plant can make three million gallons a day and produces about 1.5 million at the summer peak. HyperDataGrid says its facilities use closed-loop systems and direct-to-chip liquid cooling that can support up to 600 kilowatts a rack.

The city estimates up to $150,000 a year in extra water sales, and utility franchise fees that could reach another $150,000 a year at peak. "This doesn't solve all our problems, but it is a nice start in bridging some of those gaps we have in our budgeting process," said City Manager Jeff Cantrell. Mayor Kevin Cruse called it "exactly what we're looking for, some higher paying jobs, immediate property tax input and purchasing the city's only utility, water, with no risk or financial burden on residents." A city official said the company is also prepared to partner on housing or neighborhood revitalization elsewhere in Parsons.

Beyond Parsons, HyperDataGrid lists two Texas developments, and the Angelina County judge says it has secured power and water agreements and begun clearing a former 40-acre chip mill site on Highway 103 West outside Lufkin. Parsons officials point to a similar-sized project in Pittsburg that produces about $20,000 a month in franchise fees and taxes.