KC Tech Council Policy Update: Federal and State Legislative Sessions Begin

Kansas City, Missouri: Data Center Ordinance Update

Kansas City’s Neighborhood Planning and Development Committee passed Ordinance 251031 out of committee on January 14. The ordinance reclassifies data centers from commercial to industrial use and limits them to certain zoning districts. Most data centers will now require City Council approval through a development plan process and must meet enhanced standards for landscaping, architecture, and site design, along with will-serve letters from KC Water and Evergy.

Beyond zoning changes, Council is directing staff to develop additional policies on environmental regulations (Chapter 17), water rate structures (Chapter 78), and economic development incentives for data centers. Committee discussions revealed significant concerns about energy consumption, environmental impacts, and job creation.

KC Tech Council is actively engaged to ensure policies are developed with comprehensive understanding of actual data center operations, economic impacts, and industry best practices. We’re advocating for a balanced approach that enables Kansas City to compete for this critical infrastructure investment. As these policies develop, coordinated industry voice and technical expertise will be critical to ensuring workable, informed regulations that support our policy priority of creating a competitive market for data centers and emerging infrastructure technologies.

Kansas and Missouri State of the State Addresses

Both Kansas and Missouri governors delivered their State of the State addresses this week as legislative sessions got underway. Here are key items of note for the tech sector:

Missouri: Governor Kehoe signed an executive order promoting responsible AI use in state operations and created an Advanced Nuclear Energy Task Force to support future energy development—both aligned with our infrastructure and innovation priorities. He also proposed fiscal reforms including a phased elimination of state income tax, which could impact workforce attraction and business growth in the region.

Kansas: Governor Kelly issued an urgent call for comprehensive water infrastructure strategy with dedicated funding—critical for data center development and tech infrastructure expansion. She also highlighted bipartisan support for banning cell phones during the school day, citing mental health and learning concerns related to technology use among students.

KC Tech Council will be monitoring legislation in both states throughout the session and will keep members informed of bills that impact the technology sector and align with our policy priorities.

AI Policy: New 50-State Scorecard

The American Edge Project released their comprehensive 50-State AI Scorecard, evaluating how states are positioning themselves for AI innovation. KC Tech Council supports policies that promote AI innovation, workforce readiness, and ethical development with robust safety measures.

Federal Developments

The Trump administration is moving forward on immigration policy changes affecting the tech sector. The Department of Homeland Security finalized a controversial H-1B lottery rule, while discussions continue around a proposed $100,000 H-1B application fee. KC Tech Council strongly opposes this fee increase, which directly contradicts our policy priority of removing prohibitive fees from the immigration system. As outlined in our 2025-2026 Policy Positions, we advocate for comprehensive H-1B reform that attracts highly skilled workers—not barriers that harm companies competing for tech talent.

Join Us in Washington: DC Fly-In

Make your voice heard on H-1B reform, apprenticeship funding for emerging and up-skilling talent, and federal policies impacting the tech sector. Join KC Tech Council for our DC Fly-In where we’ll meet directly with Kansas and Missouri congressional delegations. Register now.

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View our complete 2025-2026 Policy Positions or contact us to get involved in policy advocacy.