Parsons City Commission to Consider Land Purchase Option for Planned Micro-Data Center

Citizens encouraged to attend discussions on the project

June 26, 2026 PARSONS KS – The Parson City commission will consider a contract for an option to buy 20-plus acres in the Tolen Creek Industrial Park for a proposed micro-data center at the next City Commission Work Session on July 2. HyperDatagrid, a Texas-based company, is proposing to develop a minimum of 20 acres once their due diligence is complete.

If approved, the purchase option agreement will be active for six months, with an option to extend an additional six months. During this time the development team will study utility availability, review land use and perform survey work.

Some items of the project are still being discussed in detail including final land cost, specific location within the industrial park and how utilities will be utilized by the center. The project is very carefully considering water usage and contains two different water usage options to be discussed by the commission.

The first has a very minimum amount of water usage and the second is projecting usage to be 50,000 gallons a day or less as the project grows. According to City Utilities Director, Derek Clevenger, “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. To be honest, it isn’t much more than a major manufacturer would be using,” he said.

The Parsons Water Plant currently has three million gallons a day capacity but only produces about 1.5 million gallons a day at the height of consumption in the summer. At one time the plant produced approximately six million additional gallons a month for a rural water district but no longer produces that water, which in turn more than allows for the proposed usage for the project. 

The City Commission urges residents to attend the discussions that will take place at both the Thursday, July 2 work session at 4:30 PM and at the Monday, July 6 regular meeting scheduled at 6:00 PM. All concerns and/or questions will be addressed by the city commission, staff and representatives of Hyperdatagrid.

Depending on which water use option is considered, the City could see as much as $150,000 annually in additional water sales as well as additional utilities franchise fees also potentially reaching $150,000 annually during peak usage times. “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 that starts next month,” said Parsons City Manager, Jeff Cantrell. 

The city considers this a win-win as the micro-data center will provide additional funding to the city with no loss in any city service. “This is 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,” said Mayor Kevin Cruse.

A similar sized project in Pittsburg created approximately $20,000 monthly through franchise fees and taxes. According to a Parsons city official, HyperDatagrid is also prepared to partner in other projects across the city not related to the micro-data center such as housing or neighborhood revitalization.

“We are excited about the opportunity to come to Parsons. We look forward to working alongside the City, its residents, and community leaders to help advance their goals and to prove ourselves as a committed civic partner," said Josh May of HyperDatagrid, To learn more about the company visit their website at HyperDatagrid — Ultra-dense AI data centers. Built to evolve.