AI cloud firm Lambda is expanding into Kansas City, Missouri.

The company this week announced plans to transform an unoccupied 2009-built facility into a “state-of-the-art AI Factory.”

Lambda will develop and operate the facility as the sole tenant. The site is expected to launch in early 2026 with 24MW of capacity, and the potential to scale up to more than 100MW in the future.

"Our Kansas City development perfectly embodies Lambda's strategy: a prime location for our customers, an accelerated deployment timeline, and an unwavering commitment to on-time delivery," said Ken Patchett, VP of data center infrastructure at Lambda. "We believe this success stems from completely rethinking how AI factories should be built and operated."

The site will initially feature more than 10,000 Nvidia Blackwell Ultra GPUs, which the company expects to double over time. The supercomputer will be dedicated to a single unnamed customer for large-scale AI training and inference, under a multi-year agreement.

Details on the location of the facility weren’t shared. Kansas City Mayor Quinton Lucas said the project would be in the Northland area of the city, in partnership with the Platte County Economic Development Corporation.

Update: Confirmed by Lambda, BizJournal reports the company will occupy a former Bank of America data center campus at 11155 N. Airworld Drive.

The 16.9-acre site totals 259,110 square feet across two buildings — an original 1994 structure and a $90 million expansion the bank completed in 2009. The property was sold in 2018 to a joint venture of Lincoln Property Group and Principal Real Estate Investors, part of Principal Financial Group, as part of a three-building portfolio.

"As a former banking data center, the building is well-suited to support this effort, and we're very excited to get started," Ken Patchett, vice president of data center infrastructure at Lambda, told BJ.

Founded in 2012 and offering GPU-based cloud compute, Lambda operates out of 15 data centers across the US, according to its website. The company aims to deploy more than one million Nvidia GPUs and 3GW of liquid-cooled data center capacity.

The company is known to lease colocation space in data centers in San Francisco, California (ECL); Allen, Texas; and Columbus, Ohio (Cologix). EdgexConneX is developing facilities in Chicago, Illinois, and Atlanta, Georgia, for the company. Lambda is set to occupy an Aligned facility in Plano, Texas. The company is also sub-leasing a Prime facility in Vernon, California, from Supermicro.

Earlier this year, Lambda secured a $1.5bn deal from Nvidia for the chipmaker to lease back its own GPUs. The AI cloud company is reportedly preparing for an initial public offering.

"Missouri is proud to welcome Lambda as they create new, high-quality jobs and strengthen our state's technology and innovation ecosystem," said Governor Mike Kehoe.

"Their decision to grow here demonstrates the confidence that leading companies have in our people, our infrastructure, and our pro-business environment. It's been said that AI is the space race of our time, and we must win. Data centers are the future and critical to our continued ability to drive technological innovation, strengthen our economy, and safeguard our national security interests. Partnerships like this ensure Missouri remains at the forefront of America's winning strategy."