Phase One Construction Begins on Bly Road Data Center, Arco Negotiates with Building Trades on Harmony Agreement

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INDEPENDENCE, Mo. — The Amsterdam Artificial Intelligence (AI) Conglomerate, Nebius Group, N.V., has begun construction on Phase One of its 10-phase, over two million square-foot, 800 megawatt data center located just off Bly Road — with future phases planned for the corner of Missouri Route 78 and Little Blue Parkway — in Independence, Mo. 

Nebius purchased and acquired the nearly 400 acres, which will house the four building AI factory campus in December 2025 from North Point Development and its EastGate Commerce Center — becoming the developer and taking full control over the project.

However, as this land was previously occupied by North Point Development, Nebius U.S. Vice President of Public Affairs John Sutter shared that North Point had worked with the City of Independence to zone the area for future industrial, warehousing, logistics and data center usage — ensuring a venture of this multitude could be possible.

And while Nebius develops Phase One just off Bly Road, Sutter shared North Point is diverting the roadway to exit onto Little Blue Parkway instead of Missouri Route 78, which they plan to have completed by fall of this year. 

A Union Build 

Currently, this data center is in the grading process, or what Greater Kansas City Building and Construction Trades Council Business Manager Ralph Oropeza described, where the construction workers level, even out and clear vegetation on the jobsite ground — under completion by Phase One General Contractor, Arco. 

Arco was selected as the general contractor for the first leg of this undertaking through what Sutter referred to as a competitive bid process — ultimately electing Arco because of its previous local efforts and expertise in data center construction. 

However, as Nebius selected Arco as the general contractor for Phase One, the company mentioned that there will be additional bid processes and awards for general contractors for the additional phases, as the project continues to unfold.

“Arco was the right partner for this project based on work they’ve done in the Kansas City region, work they’ve done in this sector and work importantly, I think that they’ve done with the Building Trades because it was important to us,” Sutter said in an interview. “It was important to us as a company and also what we heard and feedback we received from [Independence] City Council early was that it’s important that the Building Trades were involved in our project.”

Arco, Nebius and The Greater Kansas City Building and Construction Trades Council are currently working on a Harmony Agreement with conversations and negotiations toward a minimum of 85% local, Building Trades union labor for the project. However, Oropeza confirmed this amount is still under discussion. Sutter shared they have awarded nine union contracts so far. 

“They showed up; they showed up for us and they showed up to support us and we really appreciate that,” Sutter said in reference to The Greater Kansas City Building and Construction Trades Council. 

This Harmony Agreement is still in the negotiation process, which Oropeza hopes to have solidified within the next few months. While this documentation will not require 100% union work on the data center, which Oropeza would consider ideal, he shared that it will require the general contractor — and sub-contractors that Arco selects — to pay its workers the benefits and wages mandatory of a union employee. 

“It protects area wages and standards,” Oropeza said in an interview. “85% is a bench mark guarantee; I want 100%; we want all craft unions and all of our locals on the project.”

Behind First Phase 

Phase One, Nebius shared, will focus on constructing the first, one-story AI building, electrical sub-station and switching station — or the portion that draws power from the grid and connects it to the data center — the dry coolers and the air chillers, which will work as the site’s cooling equipment. 

“I think by the end of this year, people can expect to see the Phase One building, the shell of the building we built,” Sutter said. “The roof will be on and then in the early next year is when we’ll start getting into some of the electrical work — running wire, working on the electrical.”

And as Arco and Nebius work together to not only ensure a union-involved workforce, they have also considered the impact this multi-year build will have on the Independence community. 

“Some of the things we’re doing, when we think about how we can be a good neighbor, how can we be a good partner: we’re going to work to stagger [construction] shifts to hopefully kind of ease some of those traffic issues; we’re going to work with the schools on trying to make sure that we’re not moving equipment at the time that buses are running or that we’re not ending or starting a shift the time school buses are running or people are trying to get to and from work,” Sutter said in an interview. “It is an active construction site and it’s going to be a construction site for a while, but what we can do is try to minimize those inconveniences as much as possible,” he said.

While all construction work will be completed on location, Oropeza shared that when it comes to concrete, and any on-site concrete batches, ensuring Fordyce — a cement and concrete company, which operates under union contracts and is a union producer — is protected and its ready-mix concrete is represented is paramount. 

“This project is good for apprenticeships, the local work force and the economy; it’s not temporarily injecting stimulation into the local economy,” Oropeza said. “When we’re talking about a large-scale project like this, it opens opportunities for apprenticeships. It opens up the job scale and provides labor for that, more opportunity for people waiting to get in — it’s all about supply and demand. Everyone is competing for more labor needed to fill voids; jobs like this can get two full [apprenticeship] classes through their first year through fifth year, twice.”

Though various individuals and groups alike have raised concerns on data centers and projects such as this one, Oropeza emphasized their impact among local workforces, economies and communities as well as information education necessity. 

“People need to understand that technology is changing how we build these things,” he said. “People are turning old information into scary information on construction. It’s an arms race with Russia and China for data centers for volume; people need to understand that this is going to happen. It’s getting more invasive through information out there that’s fabricated; people need to ask the correct questions.”

Phase One construction is anticipated for completion in October 2027. However, additional phases including two, three and four, Sutter shared, are currently undergoing the design process. And while the particulars for the additional phases have not been finalized, Nebius does expect to build two-story structures.

Julia Williams Headshot
Reporter, Digital Producer

Julia Williams — a Kansas City native — is a reporter and digital producer for The Labor Beacon. A University of Missouri School of Journalism alumna, she previously served as the editor-in-chief of The Northeast News before joining The Labor Beacon staff. 

Williams’s grandfather was a Claycomo Ford Motor Company retiree and avid UAW Local 249 supporter, allowing her to understand the union difference from a young age. 

In her free time, Williams enjoys spending time with her family, traveling to see her friends and hanging out at home with her cat, Greta. She loves a good cup of coffee, seeing local, live music and shopping secondhand. With a passion for storytelling, she hopes to bring her knowledge of journalistic integrity to the Kansas City union community — giving union and labor workers a voice, while holding people in powerful positions accountable. 

 

 

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