Data center project near Armory gets final approval from city

A contentious $3 billion data center project slated for the Armory Innovation District in St. Louis has received final approval from the city's Board of Public Service. This decision comes despite Mayor Cara Spencer's request for a delay just weeks prior, citing the need for more due diligence amid growing public opposition to data center construction within the city. The Board's unanimous vote, which took place with members attending via Zoom as opponents protested in the meeting room, granted a conditional use permit for the 120-megawatt facility. This project is intended to be part of a larger technology hub that will convert the historic Armory building into office space, with the data center located at the adjacent Macy's/Famous-Barr warehouse property. Developers involved in the project include Contour, TeraWatt, THO Investments, Steadfast City, ARCO, and Lewis Rice. The approved permit includes several new conditions designed to address environmental concerns and generate community benefits. These stipulations require developers to minimize water and energy use, implement a closed-loop system with air-cooled chillers, and commit to sourcing at least 50% of the data center's energy from renewables within five years. Additionally, the developers must enter into a community development agreement benefitting the St. Louis Land Clearance for Redevelopment Authority, contribute an estimated $15 million for multimodal enhancements like the Brickline Greenway, and forgo tax abatements for the data center and Armory buildings. Mayor Spencer stated that while she shares concerns about data centers, the project's estimated $423 million in tax revenue over the first decade, with significant portions going to city services and St. Louis Public Schools, made it a difficult decision. Meanwhile, the Planning and Urban Design Agency is still considering a new citywide zoning framework for data centers, which would regulate where different types of facilities can be built and impose strict application and operational requirements.