08/20/2026
LET'S TALK DATA CENTERS.
Credit where credit is due: Ty Masterson’s Data Center Ratepayer Protection Pledge gets several important things right.
Masterson is right to insist that large data centers:
• Pay the costs they impose on the electric grid rather than shifting those costs onto residential and small-business ratepayers.
• Make long-term commitments so Kansans aren't left paying for stranded utility infrastructure if a project leaves.
• Address legitimate water concerns.
• Face appropriate security protections when critical infrastructure is involved.
Those are good, if not GREAT principles.
But I would add an important one: any data center deal should be simple.
Bring your capital. Build your facility. Pay your taxes. Pay your energy and infrastructure costs. Compete on your own.
There are also places where Masterson's proposal could improve in the future.
1. Rather than simply requiring data centers to pay the same electricity "price" as everyone else, Kansas should require "cost causation": large-load customers should pay the generation, transmission, substations, interconnection, and other infrastructure costs their projects actually create. If they can negotiate a lower market rate without shifting costs onto everyone else, that's fine.
2. Kansas should be careful about replacing market decisions with overly prescriptive government mandates on water or energy. Protect property rights, price scarce resources appropriately, and make companies responsible for the costs they impose.
THIS IS ALSO WHERE I STRONGLY DISAGREE WITH CINDY HOLSCHER'S APPROACH.
Despite Holscher calling for no tax breaks for data centers (a good thing), her proposal for a statewide moratorium on new data centers is the WRONG answer.
We don't protect Kansans from corporate welfare by replacing corporate welfare with government prohibition.
A moratorium says that even if a private company is willing to invest billions of dollars, pay its full energy costs, secure its own water supply, compensate communities for infrastructure, and build without taxpayer subsidies, Topeka should still tell it NO.
That's not an economic growth strategy.
Kansas can protect ratepayers, taxpayers, water resources, and national security without closing the door on private investment.
The better principle is:
No subsidies. No cost shifting. No special favors. No statewide ban.
Let businesses invest, and make them pay their own way.
That's what a genuinely free-market data center policy should look like. And Ty Masterson's policy is much closer to this ideal than Cindy Holscher's plan.