Olathe’s industrial footprint continues to expand.

The Olathe City Council unanimously approved up to $239.8 million in industrial revenue bonds for three facilities that will manufacture electrical and power systems for data centers on Aug. 18.

The buildings, operated by Wisconsin-based Faith Technologies, will be about 500,000 square feet each. The development will cover more than 118 acres southwest of 167th Street and Lone Elm Road.

The council also approved an 80% property tax abatement for 10 years. Faith Technologies would receive a full property tax exemption but make payments in lieu of taxes equal to about 20% of what it otherwise would owe.

Faith Technologies already operates two facilities totaling about 880,000 square feet across Lone Elm Road from the proposed development.

The company projects the three new facilities will create more than 1,100 jobs over 10 years.

The city council approved the incentives 7-0 without discussion.

Already in Olathe

Faith Technologies opened its first Olathe facility in 2019 and added an adjacent building in 2024.

The existing facilities manufacture modular power and electrical systems that are assembled and tested in Olathe before being shipped to data centers and other project sites.

The newer facility has a solar energy system containing 4,320 rooftop panels. Faith Technologies says the system is designed to generate enough electricity to offset 100% of the facility’s annual usage. The company didn’t say if the new buildings will have the same systems.

The three proposed buildings would bring Faith Technologies’ total manufacturing footprint in Olathe to nearly 2.4 million square feet.

How the incentives work

Faith Technologies said the approximately $239.8 million project will be privately financed.

Industrial revenue bonds are not repaid with general city tax revenue. Instead, the city technically takes ownership of the property and leases it to the company while the bonds are owed, making the project eligible for sales and property tax exemptions.

City staff analyzed the anticipated property tax impact of each 500,000-square-foot building separately.

During the abatement, Olathe would collect an estimated $40,700 annually from each building. Once the 10-year abatement ends, the city expects to receive about $203,500 annually from each building.

The properties have yet to generate no property tax revenue for Olathe because the land was annexed into the city in August 2025.

Looking ahead

Faith Technologies projects the new manufacturing facilities will create 1,153 jobs over 10 years.

The company estimates the average annual salary will initially be about $56,000. However, about three-quarters of the projected first-year employees would start at $45,000 or less.

The climate-controlled facilities will be constructed in two phases, beginning with the first two buildings. Faith Technologies did not provide a construction timeline.