$6B data center in Festus gets OK from city council
News Clip3:04KSDK News·Festus, Jefferson County, MO·3/31/2026
The Festus City Council approved a $6 billion hyperscale data center development agreement by CRG, owned by Clayco. This decision, promising significant economic benefits, was met with strong opposition from hundreds of residents concerned about displacement and community changes. Residents are now pursuing legal action against the project.
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Gov: Festus City Council, Festus City Attorney
The Festus City Council recently approved a controversial development agreement for a $6 billion hyperscale data center project. Developer CRG, owned by Clayco, plans to build the facility on over 360 acres off Highway 67 and CC in Festus, Missouri. The decision, which passed with a 6-2 vote, followed a heated debate with hundreds of residents expressing strong opposition.
Festus City Attorney Brian Malone highlighted the substantial economic benefits of the deal, projecting $1.3 billion in total for the area. The agreement includes no cap on the city's utility tax, expected to generate $8 million annually in revenue, increasing to $22 million by 2031 when the data center reaches full power usage. The developer is also required to offer voluntary buyouts to homes within 1000 feet of an active data center building and an updated water infrastructure plan includes a cap on maximum daily water usage.
Despite the economic promises, residents like Rosalind Daniels and her daughter Mercy, who live in a home offered a buyout, voiced deep concerns about potential displacement and the impact on their lives and education. Several speakers also noted that construction jobs were not promised to local unions, though 150 permanent jobs were guaranteed.
Following the council's approval, residents expressed their intent to continue fighting the development and are now pursuing legal action, though the specifics of this action remain unclear.