St. Louis Passes New Data Center Zoning and Tax Rules
St. Louis aldermen passed new regulations for data centers, including a three-tier zoning framework, a 600-foot residential setback, and a ban on future tax incentives. These measures were driven by public pressure, though the large Armory Innovation District project is exempt due to prior approval. Other Missouri localities are also enacting similar restrictions and moratoriums.
St. Louis aldermen have approved comprehensive new regulations for data center development, responding to mounting public pressure concerning noise, land use, and tax incentives. The legislation, awaiting Mayor Cara Spencer's signature, introduces a three-tier zoning system based on electrical capacity and mandates a 600-foot residential buffer for new facilities. Additionally, it prohibits the city from offering local tax breaks or property tax abatements for future data center projects.
The reform efforts stem from an executive order issued by Mayor Spencer in September 2025, which imposed temporary development restrictions while the city updated its outdated zoning codes. Alderwoman Anne Schweitzer, who sponsored the zoning bill, emphasized the importance of addressing residents' concerns regarding data center impacts, including noise and heat emissions, and requiring renewable energy sources for operators. Alderwoman Alisha Sonnier championed the ban on tax incentives, reflecting broader public frustration over municipal subsidies for high-tech industries.
However, a significant $3 billion, 120-megawatt data center project in the Armory Innovation District, approved in April 2026, will be exempt from these new regulations due to its pre-existing approval. This project, which received ad hoc environmental terms requiring closed-loop cooling and 50% renewable electricity within five years, was a key point of contention that fueled the reform. The city's new rules also cannot retroactively apply to the 12 existing data centers.
The regulatory shift extends beyond St. Louis City. St. Louis County Executive Sam Page initiated a review of county zoning rules, and the Wentzville Board of Aldermen in St. Charles County enacted a six-month moratorium on new large-scale data center applications. In Ferguson, residents vocally opposed a proposed data center deal, while State Representative Tricia Byrnes plans a public hearing to discuss potential statewide data center regulations, indicating a growing movement to address the industry's impacts across Missouri.