$6 billion data center proposal sparks debate, promising economic growth but alarming nearby residents fearing impacts and potential home buyouts.
FESTUS, Mo. — The City of Festus released new details on a proposal for a $6 billion “hyperscale” data center, a project that promises to fundamentally reshape the local economy while heightening tensions among residents living in the shadow of the planned site.
The developer, CRG, which previously sought to build a similar facility in St. Charles, is now deep in negotiations with Festus officials.
The city has hired a professional negotiator and reached a framework for a development agreement that would see the massive facility constructed on 360 acres off Highway 67 and CC.
City officials estimate the project could potentially generate $1.3 billion in property taxes, utility taxes, and direct payments. Under the current framework, the developer would be required to pay the city $45 million over a 10-year period, with $5 million of those funds earmarked for a new firehouse.
The agreement also places the burden of infrastructure on the developer. CRG would be required to coordinate with Ameren to pay for all energy use and necessary electrical infrastructure. Furthermore, the developer must fund all water and sewer upgrades required to support the facility.
Regarding the necessary utility expansions, city officials noted that the project would require significant additions to the municipal water supply.
“We are looking at the addition of another well close to that side of the site so that we can have a full redundancy across our system both between the water treatment plant and our wells,” Festus Public Works Director Michael Christopher said.
However, the scale of the project has caused significant alarm for those living adjacent to the 360-acre plot. The proposed agreement mandates that the developer buy out any homes located within 1,000 feet of an active data center building. Currently, that includes 12 homes—11 of which are located on Glenkee Court.
For Rozilyn Daniels, a resident of Glenkee Court, the proposal feels less like progress and more like a personal crisis.
“It’s just a win-win for them and a lose for me and anybody else that lives on Glenkee, even those that don’t live on Glenkee that live in Ashford Place. If our house houses get bought out, if I don’t accept the buy out, will it get taken by eminent domain? If I stay, I’m worried about my health, I really actually don’t know what I’m going to do right now. It’s a horrible situation to be put in,” Daniels said.
Despite the concerns of neighbors, the project maintains a base of support from those who see it as a vital source of employment and modernization. Proponents point to the promise of temporary construction jobs and 150 permanent positions, as well as the long-term stability the revenue could provide for public services.
“It’s a powerful economic engine and will generate substantial tax revenue for our community, revenue that will support our schools, critical infrastructure and provide more resources for essential city services,” Hunter Williams said.
The Festus City Council could vote on the proposed framework as soon as next week. If approved, it would basically be a green light for the developer to start building.