St. Louis OKs plan for Midtown data center estimated to generate $445M in tax revenue over 10 years
St. Louis development officials have approved a community benefit plan with TerraWatt for a $3 billion data center campus in Midtown, projected to generate significant tax revenue. Despite this, opponents have filed a lawsuit to halt the project. New city-wide zoning rules for data centers are also awaiting the mayor's signature, though they will not apply to this specific project.
The city's Land Clearance for Redevelopment Authority (LCRA) has granted final approval to a community benefit plan between St. Louis and TerraWatt, the developer behind a $3 billion data center campus in Midtown. This project, colloquially known as the "Armory data center," is slated for the old Famous-Barr building at 3728 Market St., with construction expected to commence in August 2027 and conclude by late 2029.
The agreement requires TerraWatt to pay the city $15.7 million and bars the developer from seeking local tax incentives. Steadfast City, representing TerraWatt, estimates the project will generate $430 million in tax revenue over 10 years for the city, St. Louis Public Schools, and other jurisdictions. The facility will be a 120-megawatt data center, estimated to cost $1 billion to construct and $2 billion to outfit, and includes job creation requirements and a mandate to use 100% renewable energy within 10 years of operation.
While Mayor Cara Spencer and the Board of Aldermen have praised the economic benefits and new, progressive zoning rules for data centers, these new rules will not apply to the Innovation District data center due to the timing of its approval. Opponents, who advocated for a ban on data centers, have recently filed a lawsuit against the city to stop the development, highlighting ongoing contention surrounding the project.