Festus unveils $6B data center plan, sparking tension amid local economic promises

The City of Festus, Missouri, has unveiled details for a proposed $6 billion "hyperscale" data center project, spearheaded by developer CRG. This development, slated for 360 acres off Highway 67 and CC, is presented by city officials as a powerful economic engine, promising an estimated $1.3 billion in property and utility taxes, along with direct payments to the city, including $5 million earmarked for a new firehouse. Proponents, such as Hunter Williams, highlight the potential for temporary construction jobs and 150 permanent positions, as well as long-term revenue for schools and critical infrastructure. Under the proposed framework for a development agreement, CRG would be responsible for coordinating with Ameren to cover all energy use and necessary electrical infrastructure, in addition to funding all required water and sewer upgrades. Festus Public Works Director Michael Christopher noted that the project necessitates significant additions to the municipal water supply, including a new well to ensure system redundancy. However, the ambitious scale of the project has generated considerable tension and alarm among residents living near the planned site. A key point of contention is a clause in the agreement mandating that the developer buy out homes within 1,000 feet of an active data center building, potentially impacting 12 homes, primarily on Glenkee Court. Rozilyn Daniels, a Glenkee Court resident, described the situation as a "personal crisis," expressing fears of eminent domain if buyouts are not accepted and concerns about health impacts if she stays. The Festus City Council is expected to vote on this proposed framework as early as next week. If approved, the agreement would essentially grant CRG permission to commence construction on the massive data center facility.