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All issues › Volume 343, Issue 1 › IT News › Operations

Vertical Data Centers Face Cost-Proximity Trade-Offs

Data Center Knowledge, Monday, October 5th, 2026

A proposed 20-story Kansas City data center tests whether urban proximity justifies higher build costs.

A proposed 20-story downtown Kansas City data center designed by SOM would stack compute, power and cooling on a 0.23-acre parcel, trading suburban sprawl for carrier-rich connectivity close to users.

The developer argues that latency-sensitive inference and dense interconnection justify the central location.

IDC and JLL experts note that vertical construction carries cost and operational premiums that only certain workloads, such as low-latency financial trading, may justify.

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