Festus approves development agreement for $6B data center

The Festus City Council in Jefferson County, Missouri, approved a controversial development agreement for a $6 billion hyperscale data center project. The vote, which passed 6-2, followed months of public outcry, with hundreds of residents packing a meeting to oppose the facility. The developer, CRG, a subsidiary of Clayco, plans to build the data center on over 360 acres near Highway 67 and County Road CC. City Attorney Brian Malone highlighted the substantial financial benefits for Festus, estimating $1.3 billion in revenue, with utility taxes projected to generate $8 million annually, rising to $22 million by 2031 at full power usage. The agreement also includes voluntary buyouts for homeowners within 1,000 feet of an active data center building and a cap on daily water usage. However, residents like Rozilyn and Mercie Daniels, whose home is eligible for a buyout, expressed deep concerns about displacement and the impact on their lives and education. While the project is expected to create thousands of temporary construction jobs and 150 permanent positions, critics noted the lack of guarantees for local unions. Supporters, such as Festus resident Austin Jackson, argued the investment is vital for the city's future growth and technological advancement. Despite the approval, opponents vowed to continue their fight, with a group organizing to pursue legal action against the project, although specific plans are still unclear.