Aarrgghhh, Data Centers

Wellington Council to discuss at Tuesday’s meeting to enter into an agreement for a Tier IV Data Center to be built north of community

March 16, 2026  Cueball

By Tracy McCue, Sumner Newscow report — The Wellington City Council will be discussing at Tuesday’s meeting whether or not to enter into an energy sales agreement between the City of Wellington and CORMER for the development of a Tier IV Data Center, north of the community.

The proposed project location is a parcel owned by the Wellington Humane Society, situated just north of the City Limits but within the City’s utility service territory.

Data centers are the physical infrastructure behind AI — the buildings that house the specialized computers needed to run AI systems. “As demand for AI has surged globally, the race to build this infrastructure has created a major economic opportunity for cities and communities that will act,” according to a communication information overview issued through representatives of Cormer.

Cormor officials state:

“Wellington has something many larger cities do not: available electrical power, room to grow, and the ability to move quickly. This project is designed to put that advantage to work for the community. The bottom line is the project would bring significant new utility revenue to the City, expand the local tax base, and create construction employment, and put Wellington on the map as a technology-forward community — all without requiring Wellington to build any new water infrastructure or take on any new construction risk. The developer pays for all required infrastructure upgrades.”

Cormor officials state that AI is already powering search engines, medical diagnostics, financial systems, and business software used every day. To run AI at scale, technology companies need enormous computing facilities. The United States is currently experince and unprecedented rush to build them.

Over 2,000 new data center projects have been announced across North America since 2023. Technology companies are actively looking for communities with available power, and that is exactly what Wellington offers, according to Cormor spokesmen.

A resolution was introduced by the City of Wellington at the March 3 council meeting. According to the meeting minutes, Dwayne Corcoran, a representative from Cormor, stated that the proposed center north of town would be waterless and would not use batteries like most other data centers. Unlike other developers, their plan is for 14.7 megawatts and will create about 14 high-paying jobs paying $75,000 or more annually.

Council member Cindy Antonich asked about how much electricity would be needed and if the City would profit. Assistant City Manager of Utilities/IT Jason Newberry said with the proposed maximum load of 14.7 megawatts over four years, Wellington’s current system does have that capacity now, and it would be profitable. Newberry then later in the meeting cautioned that if the data center wanted to expand past the 14.7 MW, it will be short on capacity over the next several years.

Council member Jerry Elmore said the city would benefit from the sale of electricity, but not the property tax, as it would be in the county.

The council then tabled the resolution until the next meeting. It passed by a 4-2 vote with Mike Westmoreland, Antonich, Elmore and Jan Grace voting for the table; and  Tim Hay and Lucas voted against it.

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A work session was then called on March 12 to discuss this project again as representatives from the Cormore Data Shelter team, including Dwight Concoran, Dwayne Corcoran and Chris White wished to make a presentation. The following is according to the city clerk’s minutes of that meeting.

Dwight Corcoran explained the advantages of locating data centers in rural communities, citing lower land costs and access to available power. He emphasized the potential economic impact, including the creation of high‑paying jobs and opportunities for community development. Elmore asked about the long‑term growth potential of the proposed facility. Dwight Corcoran responded that their model focuses on smaller, more flexible data centers designed to scale over time.

Dwayne Corcoran noted that the development team comes from small‑town backgrounds and believes AI data centers will eventually be located in many communities. He explained that the concept includes five‑megawatt pods with an overall load of 14.7 megawatts. Chris White explained the concept of colocation, in which smaller businesses can store and manage data within the facility.

White also discussed the project’s waterless cooling system, which uses a gas rather than chilled water, thereby reducing environmental impact. Dwight Corcoran added that the design incorporates microgrids for both power and cooling, allowing for phased growth and operational flexibility.

Elmore asked additional questions regarding the waterless cooling system, noting that water usage has been a topic of discussion in Sedgwick County. White explained that the cooling system operates at the cabinet level and does not require water. The gas‑based system is fully contained within each cabinet door. White stated that water usage would be limited to approximately two gallons per day, primarily for humidification in the data hall and for domestic uses such as restrooms and break rooms.

Dwight Corcoran discussed the potential economic impact on the City of Wellington, including increased electric utility revenue and job creation. He noted the possibility of expanding the facility’s capacity to 100 megawatts in the future. The discussion included the potential to attract additional technology companies and to create an AI development incubator.

Corcoran stated that the initial phase of the project would utilize approximately 30 percent of the City’s electrical capacity and generate an estimated $1.3 million in electric utility revenue, which he indicated would approximately double the City’s annual electric revenue.

Cormor Data Shelter estimated approximately 200 construction jobs over a two‑year construction period and approximately 20 permanent employees for ongoing operations. Dwight Corcoran noted that the facility would include white‑space rooms and GPU‑based AI infrastructure, which could support new technological developments. He stated that data centers can serve as an engine for attracting new businesses by providing access to advanced computing resources.

The presenters noted that Wellington was selected in part due to its proximity to the regional aerospace industry and the area’s existing investments in regional and national broadband infrastructure.

Elmore raised questions regarding potential environmental impacts, including water usage and noise. Dwight Corcoran and White addressed these concerns, reiterating the minimal water usage and explaining noise mitigation strategies. They emphasized the importance of working collaboratively with the community to address concerns as they arise.

Regarding noise abatement, the presenters stated that backup generators would be operated for approximately 26 minutes per year for routine testing. Outside of testing, generators would be used only in emergency situations, during which noise considerations would be secondary to public safety and operational continuity. Council Member Antonich asked about potential impacts to the Humane Society shelter located in the area. The presenters stated that mitigation measures had been considered to address potential impacts to the shelter and its occupants.

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In a memo sent to the council for tomorrow’s meeting, Wellington City Manager Jeff Porter states:

“CORMOR has indicated that a site within the City’s utility service area is not feasible without concessions on energy costs. Under City Code, customers with a peak load of at least 1,000 kilowatts may qualify for a negotiated Economic Development rate. CORMOR has communicated an anticipated peak load of approximately 14.7 megawatts (just under 15,000 kilowatts), which meets this threshold.

The proposed project location is a parcel owned by the Humane Society, situated just north of the City limits but within the City’s utility service territory. City staff have confirmed that existing water infrastructure is sufficient to serve the facility. However, the project would require upgrades to the Crusader Substation at West Road and 30th Street, as well as the construction of approximately 3,000 linear feet of new overhead electrical conductors. The developer would be responsible for all costs associated with the required electrical infrastructure.

The proposed electric rate is one cent above the City’s cost of power from KPP Energy. It is important to note that the City has a total power purchase commitment within the KPP power pool. The developer would also be responsible for power losses on their dedicated circuit, as such losses are unavoidable.”

One thought on “Aarrgghhh, Data Centers

  1. I don’t entirely trust AI. It’s too ephemeral, and while I do use it on occasion, it’s a bit creepy. Not sure it would be all that reliable, or perhaps TOO reliable, if you get my drift. Barring that, if you already have a perfectly good building to use why go and construct another one? It just sounds, from my very limited viewpoint, that Someone Wants a New Building. Because.
    It also seems a major ego project and disruption, for no reason other than wanting a new puppy to go with the six other puppies you already have.
    I may be missing the big deal point here, but still…

    Liked by 1 person

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