St. Louis Mayor Spencer ready to enact data center regulations, Midtown project faces funding and legal challenges
St. Louis has voted to enact strict data center regulations, described as some of the toughest in the nation, covering setbacks, renewable energy, and tax breaks. Mayor Kara Spencer intends to sign the bill into instant law with an emergency clause. These rules come amidst a debate balancing potential tax revenue against concerns about data center impacts.
The St. Louis Board of Aldermen has voted to implement strict conditions on data center development, which they claim are the toughest regulations in the nation. These rules address issues such as 600-foot setbacks from homes, schools, and parks, a requirement for 100% renewable energy within 10 years, and the elimination of local tax breaks. Mayor Kara Spencer has indicated her readiness to sign the bill into effect with an emergency clause, making it instant law.
Political editor Mark Maxwell reported on KSDK News that despite St. Louis's desperate need for tax revenue and data centers' potential to generate significant funds, city officials have spent a year crafting these regulations. Some aldermen, including Anne Schweitzer who sponsored the bill, expressed personal aversion to AI and social media, with one even stating, "If I had my way, we would turn off the internet." However, the economic benefits observed in places like Virginia, where data centers generate hundreds of millions in tax revenue, influenced the decision to regulate rather than ban.
Lobbyists, including Rodney Hubbard, husband of Alderwoman Shame Clark Hubbard, were active in Jefferson City. Alderwoman Hubbard abstained from the vote due to her husband's client interests. The planning commission is scheduled to vote on the regulations on September 9th, with the full Board of Aldermen taking a final vote on September 11th. Mayor Spencer also confirmed discussions are underway for a North City Data Center, though the developer remains unknown, suggesting the regulations are racing against an un-named project.