Where legislatures lag, local officials are stopping data centers altogether
Local officials in Missouri and other states are enacting moratoriums and bans on data center construction due to state legislatures failing to pass regulations. Cities like Peculiar, Festus, and St. Charles have seen intense public opposition, leading to political consequences and outright development blocks. State-level efforts to regulate data centers in Missouri, Maine, and Georgia have largely stalled or been vetoed.
Across the United States, particularly in Missouri, local officials are stepping in to regulate the rapid expansion of hyperscale data centers as state legislatures struggle to keep pace with technology. In St. Charles, a St. Louis suburb, local officials enacted a permanent ban on data center construction after initially approving a one-year ban, largely due to strong community opposition over concerns about water supply contamination and rising electricity rates. Mayor Dan Borgmeyer, who initially supported a $1 billion project by developer CRG for its tax revenue, reversed his stance due to public outcry, with City Council Vice President Justin Faust highlighting a lack of transparency from the developer.
Similar situations unfolded in other Missouri cities: in Peculiar, a Kansas City suburb, a proposed data center led to the mayor and city administrator being forced from their jobs due to public backlash. In Festus, south of St. Louis, residents' anger over a proposed $6 billion CRG data center led to police intervention at city council meetings and the subsequent ousting of four pro-data center City Council candidates in local elections. These local actions come as legislative efforts in Missouri, Maine, and Georgia to implement regulations or moratoriums on data centers have stalled or been vetoed, despite bipartisan concerns from lawmakers like Missouri Representatives Mike Costlow, Colin Wellenkamp, and Marty Joe Murray regarding environmental impact, water, and electricity use.
Experts like Alli Finn, director of community partnerships at AI Now, emphasize that while moratoriums provide communities time to develop comprehensive regulations, they are not a standalone solution. The North Star Data Center Policy Toolkit, co-authored by Finn, suggests interventions like conditional use permits and limits on tax incentives. Meanwhile, state Senator Mike Cierpiot questions the opposition, citing the tax benefits data centers could bring to local districts. The ongoing conflict highlights the urgent need for clearer, more comprehensive regulatory frameworks for data center development.