Festus advances $6B data center plan amid buyout concerns

The city of Festus, Missouri, is advancing a proposed $6 billion hyperscale data center project off Highway 67 and CC, spearheaded by developer CRG, which previously sought to build in Saint Charles. City officials and CRG have agreed on a framework for a development agreement that, if approved, would commit the developer to paying the city $45 million over 10 years, including $5 million for a new firehouse. The project is estimated to generate $1.3 billion in property and utility taxes. However, the proposal met with strong opposition from residents during a heated public meeting at Festus High School. A key point of contention is the developer's requirement to buy out 12 homes located within 1000 feet of an active data center building, primarily on Glen Key Court. Residents like Rosalind Daniels expressed deep uncertainty and fear of eminent domain if they refuse buyout offers, stating the situation is a "win-win" for the developers and a "lose" for homeowners. CRG would also be responsible for all energy, water, and sewer infrastructure upgrades, including a new well for water redundancy. While some residents support the project for its promise of temporary construction jobs, 150 permanent jobs, and revenue for schools and infrastructure, the prevalent sentiment at the meeting was against the deal. The Festus City Council is expected to vote on the framework as early as next week, which would give CRG the green light to proceed with construction.