Callaway County commissioners discuss uncertainty, economic impacts of proposed data center
Crusoe Energy is proposing to develop a data center in Callaway County, Missouri, but the project faces uncertainties including land acquisition, water infrastructure, and delays in securing power agreements. Callaway County commissioners are discussing potential Chapter 100 tax abatements and the project's economic impact, while acknowledging limited regulatory power due to a lack of zoning ordinances. The commissioners also noted that a constrained electricity supply could impose a 'self-imposed moratorium' on further data center development in the area.
Crusoe Energy, an AI company based in Denver, is planning to develop a data center on 200 acres in the northwest Kingdom City area of Callaway County, Missouri. However, Western Commissioner Christopher Scott and Presiding Commissioner Gary Jungermann informed the Fulton Rotary Club that significant uncertainties remain, including the absence of a signed land purchase or water district agreement, and delays in finalizing a power agreement with Callaway Electric Cooperative. Crusoe's site plans have also evolved, with initial proposals for a single 800,000 square foot building now potentially shifting to two or three smaller buildings of the same combined square footage.
Callaway County lacks planning and zoning ordinances for unincorporated areas, meaning commissioners have limited direct power to regulate the data center's development without incurring legal liability. The biggest challenge identified is electricity, as Crusoe's connection through Callaway Electric Cooperative requires sourcing additional power. Commissioners warned that the current lack of additional power generation could effectively create a "self-imposed moratorium" for any future data center expansion or new projects within the cooperative's service area.
Furthermore, the local water district would need to upgrade its infrastructure by installing larger pipes before the data center can connect to a water source. The county commission is considering offering a Chapter 100 tax abatement agreement, which would apply to personal property taxes (like servers) but not real estate. This agreement would guarantee a fixed payment in lieu of taxes and alter how tax dollars are allocated, potentially benefiting entities like the North Callaway School District and the fire department.
Commissioner Scott encouraged residents with concerns to contact the commission's office, stating that Crusoe has been open to discussions regarding mitigation efforts. Jungermann confirmed that Crusoe's proposed development is the only data center project the commission is currently aware of, despite its potential to be the largest investment in Callaway County's history.