Festus City Council Members Propose Yearlong Data Center Moratorium
Three Festus City Council members have proposed a yearlong moratorium on a proposed $6 billion hyperscale data center development by CRG. The proposal comes amidst significant community opposition and concerns regarding water usage, electricity, environmental impact, and property values. The moratorium is intended to allow for further review of city standards before proceeding.
Three Festus City Council members, Karl Weekley, Dan Moore, and Rick Belleville, have introduced a bill proposing a yearlong moratorium on a planned hyperscale data center project. Councilman Belleville presented the idea during a Monday night work session, citing concerns from an online survey of residents that highlighted issues such as water and electricity consumption, community health risks, property values, and environmental impacts.
The proposed moratorium would pause the acceptance, processing, and issuance of permits for data centers and battery energy storage systems, allowing the City Council time to review municipal zoning, fire, building, water, wastewater, electrical, and development standards. Mayor Sam Richards stated the proposal needs to be reviewed before being placed on a formal agenda, indicating it is not yet confirmed for a vote.
The project developer, CRG of St. Louis, which is the data center development arm of Clayco, announced plans in late 2022 to build a $6 billion hyperscale data center on 361 acres north of Hwy. 67 and west of Hwy. CC. CRG President Chris McKee acknowledged the moratorium proposal, emphasizing the company's commitment to the project and its efforts to address community feedback through a "substantially smaller plan" and a community webinar. However, residents expressed dissatisfaction with the virtual nature of CRG's upcoming webinar, preferring in-person meetings. Community members also criticized the perceived lack of transparency and hastened process for approving the large-scale industrial installation.