Executive Summary
Missouri enters FY2027 under first-term Governor Mike Kehoe, who signed a $50.7B total budget ($49.8B operating after 65 vetoes; $15.7B general revenue) on June 30, 2026 — essentially flat versus FY2026's $50.8B — with an explicit message that 'spending, not revenue, is the problem' — meaning sellers should expect cost-justified, efficiency-framed buys rather than open-ended expansion. Three threads matter most. First, Google's $15B AI data-center campus in New Florence (announced May 2026) — backed by 1+ gigawatt of new generation — makes Missouri a national AI-infrastructure story and reshapes the energy and economic-development conversation. Second, Executive Order 26-02 (Jan 2026) directs the Office of Administration to deliver a statewide AI integration framework by November 30, 2026, opening the door to governed government AI. Third, the buying motion is centralized: OA-ITSD (~1,000 staff) runs IT for 15 consolidated executive departments, and the OA Division of Purchasing runs the statewide-contract and cooperative-procurement vehicles every deal flows through. For Dell, the play is AI-ready infrastructure, a client/endpoint refresh framed on efficiency, and getting onto (or validating coverage on) Missouri statewide contracts early.
- AI-infrastructure demand riding the Google New Florence buildout and statewide AI-framework momentum (PowerEdge, networking, services).
- Governed, on-prem / private-cloud AI for agencies operationalizing the EO 26-02 framework on sensitive state data.
- Endpoint, client, and lifecycle refresh across 15 OA-ITSD-consolidated departments, framed on the administration's efficiency mandate.
- Cybersecurity modernization tied to SLCGP whole-of-state grants and OA-ITSD Information Security.
Dell Action Plan
- Lead with AI-ready infrastructure: tie Dell ISG / AI Factory to the Google New Florence buildout, the EO 26-02 framework, and University of Missouri research-computing demand.
- Engage OA-ITSD as the consolidated buyer for 15 executive departments — server, storage, networking, and client/lifecycle, framed on the administration's efficiency mandate.
- Validate Dell's coverage on Missouri statewide contracts and the cooperative program before pursuing deals; confirm resellers are current and correctly scoped.
- Position governed, private/on-prem AI for sensitive state workloads ahead of the November 2026 AI framework deadline.
- Map cybersecurity offerings to SLCGP whole-of-state grants and OA-ITSD Information Security for state-and-local endpoint and infrastructure modernization.
Budget & Fiscal
Missouri budgets on an annual fiscal-year cycle beginning July 1. Governor Kehoe signed the $50.7B FY2027 operating and capital budget (about $49.8B operating after vetoes; $15.7B general revenue) on June 30, 2026, issuing 65 vetoes (~$30M GR) and $441.3M in expenditure restrictions ($337.2M GR) to keep spending in check — essentially flat versus the $50.8B FY2026 budget. There is no single published 'state IT budget' line — technology spend is embedded across agencies and delivered centrally through OA-ITSD. Budget officials flag a projected FY2028 shortfall of $500M+, so expect continued spending discipline.
- Missouri budgets annually (FY starts July 1) — figures are single-year unless noted.
- Technology is funded through agency budgets and delivered by OA-ITSD; there is no consolidated public 'IT budget' line to forecast against.
- Expect cost-justified, efficiency-framed buys under the Kehoe administration's 'spending is the problem' posture.
- FY2027 enacted (signed June 30, 2026): $50.7B total ($49.8B operating after 65 vetoes; $15.7B GR) vs. $50.8B FY2026 — essentially flat total spend, but $441.3M in expenditure restrictions and a projected FY2028 shortfall of $500M+ signal continued fiscal discipline ahead.
All funds (general revenue + federal + other), total operating appropriations by department, final after-veto; excludes capital improvements and public debt Statewide: $50.83B → $49.84B (-2.0%). Top 12 movers of 24 agencies.
| Agency | Prior | Current | Δ $ | Δ % |
|---|---|---|---|---|
| Economic Development | $2.23B | $338.1M | −$1.89B | -84.8% |
| American Rescue Plan Act | $2.66B | $1.17B | −$1.49B | -55.9% |
| Social Services | $16.99B | $18.16B | +$1.16B | +6.8% |
| Public Safety | $1.23B | $2.08B | +$845.9M | +68.6% |
| Transportation | $3.56B | $3.96B | +$392.9M | +11.0% |
| Natural Resources | $1.23B | $1.49B | +$260.2M | +21.2% |
| Elementary and Secondary Education | $8.63B | $8.42B | −$206.1M | -2.4% |
| Health and Senior Services | $2.34B | $2.15B | −$190.5M | -8.1% |
| Mental Health | $4.38B | $4.49B | +$112.4M | +2.6% |
| Employee Benefits | $1.71B | $1.81B | +$100.9M | +5.9% |
| Office of Administration | $767.3M | $680.9M | −$86.4M | -11.3% |
| Labor and Industrial Relations | $352M | $323.9M | −$28.1M | -8.0% |
- Both columns are taken from the FY2027 Totals by Department document (FY 2026 Final vs. FY 2027 Final After Veto); FY2026 figures cross-verified against the FY2026 Totals by Department document, matching exactly for every department.
- Operating budget only. Capital improvements ($993M FY2026, $848M FY2027) and public debt (zero both years) are excluded; department sums tie exactly to the published Total Operating Budget lines ($50.83B FY2026, $49.84B FY2027).
- American Rescue Plan Act (HB 20) is a separate wind-down appropriation bill (-$1.49B YoY); Economic Development's -$1.89B drop is mostly one-time federal funds rolling off; Public Safety's +$846M is driven by federal funds (+$870M).
- Employee Benefits (HB 5) and Real Estate (HB 13) are statewide appropriations administered through the Office of Administration, not standalone departments.
Source: MO Division of Budget & Planning, FY2027 Totals by Department (appropriation bills portal) · MO Division of Budget & Planning, FY2026 Totals by Department (appropriation bills portal)
Initiatives & Policy
Google New Florence AI Data Center6
Under construction (ground broken)Announced May 2026, Google's $15B campus on 900+ acres in New Florence (Montgomery County) is described as among the largest investments in Missouri history. Google has contracted 1+ gigawatt of new generation plus ~500MW through Ameren. It anchors Missouri as a national AI-infrastructure hub and is the strongest tailwind for Dell ISG / AI-factory and ecosystem demand in the state.
Statewide AI Integration Framework (EO 26-02)5
In progress — due Nov 30, 2026Executive Order 26-02 (signed Jan 15, 2026) directs OA Commissioner Kenneth Zellers to deliver a statewide AI integration framework by Nov 30, 2026 — prioritizing service delivery, data privacy/security, human-in-the-loop decisions, transparency, and data quality. The order also tasks DNR and the PSC with addressing data-center energy demand. Agencies will need governed, auditable AI — an opening for private/on-prem AI on sensitive workloads.
OA-ITSD Consolidated IT Services2
OperationalOA-ITSD (~1,000 professionals) is the consolidated IT provider for 15 executive departments plus the Governor's and Lt. Governor's offices, delivering client engagement, GIS, information security, networks/telecom, servers/storage/email, and app development. Consolidation concentrates infrastructure, endpoint, and lifecycle decisions in one buyer — a high-leverage relationship for Dell across server, storage, and client.
Whole-of-State Cybersecurity (SLCGP)9
ActiveMissouri's State and Local Cybersecurity Grant Program (administered by DPS/Office of Homeland Security, ~$1.9M FY2025 federal award) funds local-government planning, monitoring, protection, and legacy-tech upgrades — capped at $200K per applicant. Combined with OA-ITSD Information Security, this is a modest but steady channel for endpoint security, infrastructure hardening, and modernization in local jurisdictions.
Connecting All Missourians Broadband (BEAD)8
FundedThe DED Office of Broadband Development won NTIA approval (Jan 2026) to award $814M of Missouri's $1.7B BEAD allocation — reaching 200,000+ locations with ~81% fiber while saving ~$900M. Primarily a connectivity program rather than a direct Dell compute play, but it expands the addressable government and community-anchor footprint over time.
Procurement & Competition
Missouri's technology procurement is centralized under the Office of Administration. The OA Division of Purchasing competitively bids and maintains Statewide Contracts — 150+ categories and 650+ individual contracts — that all executive agencies use and that are extended to local governments and quasi-public bodies through the Cooperative Procurement Program. OA-ITSD is the consolidated IT delivery arm that operationalizes these buys for 15 executive departments.
| Vehicle / gate | What it means for Dell |
|---|---|
| Missouri Statewide Contracts | Primary vehicle. Competitively bid (RFP) and re-bid by the OA Division of Purchasing; 150+ categories. Confirm Dell agreements and resellers are current and correctly scoped for target agencies. |
| Cooperative Procurement Program | Extends statewide contracts to eligible local governments, political subdivisions, and quasi-public bodies. Voluntary participation — broadens reach beyond state agencies. |
| NASPO ValuePoint / national cooperatives | Missouri participates in national cooperative agreements that can serve as alternate paths where a statewide contract gap exists. Validate the cleanest route per opportunity. |
| Key buying entity | Role |
|---|---|
| OA Division of Purchasing | Central procurement authority; owns statewide contracts and the cooperative program. |
| OA-ITSD | Consolidated IT provider for 15 executive departments; the operational technology buyer and standards owner. |
| Dept. of Economic Development (DED) | Office of Broadband Development; data-center / economic-development incentives tied to the Google project. |
| University of Missouri System | Independent research-computing and AI/informatics buyer (NextGen Precision Health, MU informatics). |
Missouri is a centralized, contract-driven, cost-conscious market. With buying concentrated in OA-ITSD and the Division of Purchasing, incumbents on statewide contracts hold an advantage, and the Kehoe administration's efficiency posture rewards clear ROI. Differentiation comes from AI-infrastructure capability tied to the data-center buildout, governed-AI readiness for the EO 26-02 framework, and lifecycle/TCO economics rather than price alone.
Power Structure
| Decision-maker | Why they matter |
|---|---|
| Mike Kehoe1 Governor · State of Missouri | First-term Republican; champions the Google data-center win and an efficiency-first budget — 'spending, not revenue, is the problem.' |
| Kenneth Zellers5 Commissioner · Office of Administration | Owns delivery of the statewide AI integration framework due Nov 30, 2026 under EO 26-02; oversees OA-ITSD and Purchasing. |
| John Laurent15 State CIO · OA-ITSD | Re-verified current as of June 2026. Appointed CIO Dec 2024; former Global VP of IT at Enterprise Holdings and Accenture consultant. Owns statewide IT direction and standards. |
| Shawn Ivy16 State CISO · OA-ITSD Office of Cyber Security | Chief Information Security Officer; 30+ years public-service IT. Leads OCS protecting 60,000+ devices with 24x7 SecOps, incident response, IAM, and assessments — the security owner for state endpoint/infrastructure modernization. |
| Tim Marczewski14 Director of AI and Innovation · Office of Administration | Surfaced June 2026 at the Governor's AI & Data Center Forum; a key contact for operationalizing the EO 26-02 statewide AI integration framework and governed-AI buys. |
| OA Division of Purchasing10 Central procurement authority · Office of Administration | Bids and maintains the statewide contracts and cooperative program every technology deal runs through. |
News & Signals
Sources
- Governor Mike Kehoe — Governor's Priorities
- Missouri OA-ITSD — About OA-ITSD
- Governor Kehoe — Takes Action on FY26 State Operating Budget Bills
- Governor Kehoe — FY2027 Consensus Revenue Estimate
- GovTech — Missouri Executive Order Seeks to Advance AI Strategy, Use
- Governor Kehoe — Missouri Secures $15 Billion Investment from Google in Montgomery County
- Missouri Independent — Missouri AI regulations stall as lawmakers fear loss of rural broadband funds
- KY3 — Missouri receives approval for $814 million broadband expansion
- Missouri DPS — FY2025 State and Local Cybersecurity Grant Program (NOFO)
- Missouri OA — Cooperative Procurement Program FAQs
- NASBO — Summaries of FY2027 Proposed Budgets (June 2026)
- AIwire/HPCwire — Amazon Selects Missouri for $10B Data Center Campus
- The Beacon — Missouri General Assembly sends $50.7 billion budget to governor's desk
- Missouri S&T News — Missouri leaders look to S&T as state prepares for AI, data center growth (June 18, 2026 forum)
- Missouri OA-ITSD — Chief Information Officer (John Laurent)
- Missouri OA-ITSD — Information Security / Office of Cyber Security (State CISO)
- Governor Mike Kehoe — Takes Action on FY27 State Budget Bills
- KOMU — Missouri representatives urge Kehoe for special session on data centers
- KBIA — Montgomery County approves a tax incentive package for Google data center
- KBIA — Preserve Montgomery County hosts town hall on data center plan
- KFVS12 — Regulations on AI, data centers in Mo. slowed; lawmakers share suggestions for communities
- Hoodline — St. Louis Aldermen Ban Data Center Tax Breaks, Force 600-Foot Home Buffers
- St. Louis Public Radio — Data center protesters fill Missouri Capitol seeking a statewide construction moratorium
- Fox 2 Now (KTVI) — Franklin County votes to allow data center development
- Office of Governor Mike Kehoe — Governor Kehoe Signs Executive Order Establishing Safeguards on Automated License Plate Readers
- KBIA — Advocacy group can continue to challenge data centers being built in Montgomery County, judge rules