The case for building AI in the heartland
The Coastal Myth
San Francisco has the brand. New York has the money. But in 2026, both cities have the same problem: it costs $4,000/month for a studio apartment and your best engineers are getting poached every six months.
Kansas City doesn't have that problem. What it does have is Google Fiber (since 2012), a cost of living 42% below SF, and a startup community where founders actually return your texts.
The Infrastructure Advantage
When Google chose Kansas City as the first Fiber city in 2012, most people thought it was a gimmick. Fourteen years later, KC has some of the fastest and most reliable internet infrastructure in the country. For AI companies shipping models that need low-latency inference, this matters.
But fiber is just the start. KC sits in the geographic center of the US, meaning latency to both coasts is roughly equal. AWS, GCP, and Azure all have central US regions nearby. And the power grid? Cheaper than California by a factor of 3x.
Cost Comparison: KC vs SF vs NYC
| Metric | Kansas City | San Francisco | New York |
|---|---|---|---|
| 1BR Rent | $1,100 | $3,800 | $3,200 |
| AI Engineer Salary | $145K | $240K | $220K |
| Internet (1Gbps) | $70/mo | $80/mo | $75/mo |
| Office Space (sq ft) | $18 | $75 | $82 |
| State Income Tax | 5.3% | 13.3% | 10.9% |
The Community Factor
Here's the thing no one talks about: KC founders help each other. It's not a zero-sum competition like SF where everyone's afraid you'll steal their engineer or their idea.
TKC Group has built 12+ AI companies here. We share infrastructure, authentication, and even office space. When TheAire.co needed an SMS integration, we plugged in TextAlerts.ai. When MiniCFO.ai needed content generation, WitCraft.ai was already built.
That's not a portfolio strategy. That's a network effect.
World Cup 2026: The Catalyst
Kansas City will host FIFA World Cup matches at GEHA Field in June 2026. The world is about to discover what we already know: KC is a world-class city that the coasts have been sleeping on.
For AI companies, this is the window. Build here now while costs are low, talent is loyal, and the world hasn't caught on yet. By 2028, KC real estate and salaries will look very different.
Q: Is Kansas City really competitive for AI talent?
A: Yes. Between KU, UMKC, and the enterprise AI teams at T-Mobile, Oracle Health, and Garmin, there's a deep bench of engineers. Plus, remote-first culture means you can hire nationally while keeping your HQ costs at KC rates.
Q: What about VC funding in the Midwest?
A: It's growing fast. Firms like Flyover Capital, Techstars KC, and Pipeline Entrepreneurs are active. And increasingly, coastal VCs are funding Midwest startups specifically because the unit economics are so much better.