Patmos Hosting Inc. announced it has secured a $100 million C-PACE loan from PACE Loan Group to advance the redevelopment of the former Kansas City Star building into a state-of-the-art, multi-use AI campus.
When the next phase of infrastructure upgrades is complete this spring, the 421,112-square-foot, four-story Patmos AI Campus will feature 35 megawatts of power for high-density GPU, HPC, and AI infrastructure companies. The C-PACE loan will fund energy-efficient infrastructure improvements as part of the continued expansion. Patmos initially started construction in late 2024, building out the initial 5MW in less than 90 days, followed by another 7MW over the next 90 days – establishing itself as the supercomputer speed-to-market leader. Since then, two publicly traded tenants have executed multi-year leases with Patmos and set up shop in Kansas City, enabling the company to purchase and renovate the iconic Kansas City landmark dramatically ahead of schedule.
“With this loan, Patmos is able to continue to deliver on our speed to market promise for our clients while creating an AI Campus that serves as the technology hub for one of the fastest expanding regions in the industry. Using a PACE vehicle to expand AI infrastructure has never been done — but that’s the Patmos way. It allowed us to build fast while maintaining long-term sustainability, profitability, and ownership”, said John Johnson, Patmos’ founder and chief executive officer. “The PLG team understood our vision at every turn and worked to deliver a solution that was as unique as our business model. We are looking forward to working with them on subsequent retrofits.”
Located at 1601 McGee Street in downtown Kansas City, on the site that had been previously declined by the Kansas City Royals for its new stadium, the five-acre campus is part of a significant retrofit project. In addition to its state-of-the-art AI data halls, Patmos will convert nearly 150,000 square feet of the building into a multi-tenant technology hub, co-working, and event space, advancing its commitment to be the most people-centric AI infrastructure company on the planet.
The C-PACE proceeds will be used for energy-efficiency, equipment, HVAC, and plumbing improvements to the property to support the data center’s cooling and electrical load. The project is expected to be completed in March 2026.
“C-PACE made a lot of sense for this renovation. Many of the conversion costs were eligible, and the long-duration capital is well aligned with Patmos’s business plan. Our funds complemented the borrower’s significant investment to create an efficient, turnkey AI data center in a city center,” said Rafi Golberstein, CEO and founder – PACE Loan Group. Robbie Pinkas, senior vice president, PACE Loan Group, originated the loan for Patmos. “I’ve long seen the potential of using C-PACE for data centers since efficiency makes such a big impact on their bottom line, and am excited to continue finding opportunities in this space.”
The property is located in the downtown core of Kansas City, providing strong access to the urban area, which supports industrial, communications, warehouse, and office uses. Its urban placement provides proximity to fiber routes and utility infrastructure, supporting its continued suitability as a hyperscale data center.
“This was a truly historic project given that it is the largest C-PACE Project in Missouri by financing amount and supports the growing energy demands of data centers, which makes C-PACE funding for energy efficiency improvements of utmost importance in project development,” said Josh Campbell, Executive Director, Missouri Energy Initiative.
The C-PACE program is managed by Show Me PACE, a PACE program available throughout the state of Missouri, including Jackson County, and is overseen by the Show Me PACE Clean Energy Development Board (“CEDB”). Missouri’s program was founded in 2010 and revised in 2021. To date, the program has helped finance over $329 million in improvements across the state.
Learn more about how this Patmos project is transforming Kansas City into a hub for next-generation AI infrastructure.
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