St. Louis, known primarily as the historic brewing capital of the United States, is trying to reshape its identity by becoming a regional tech hub. It’s making moves towards establishing a large technology park centered around a sizable data center—a project that has, however, sparked public dissent and legal disputes.
With a population of about 280,000, St. Louis already has over a dozen operational data centers, plus three more in the works and potentially up to ten others in planning stages.
The most contentious of these projects is a 120-megawatt, 525,000-square-foot hyperscale facility expected to rise in Midtown St. Louis. This site once hosted a Macy’s and a Famous-Barr warehouse, right next to the historic Armory building.
This data center, developed in partnership with TeraWatt Infrastructure—a company from San Francisco focusing on commercial electric vehicle charging networks—is set to be the cornerstone of the $3.1 billion Armory Innovation District, which is privately funded.
Located next to Interstate Highway 64, the long-vacant Armory is expected to transform into 214,500 square feet of modern office and creative space, replacing what was once a tennis training center and entertainment venue.
Developers claim that the district will generate over 1,000 temporary union construction jobs and 200 permanent positions. Although tax abatements are not allowed for the Armory center, it’s estimated that it will contribute $432 million in tax revenue during its first decade, with nearly half benefiting St. Louis public schools.
Innovation vision for Midtown
If everything goes as planned, construction might begin in August 2027 and wrap up by late 2029. Proponents suggest that this development could significantly boost the local economy.
Ron Kitchens, CEO of Greater St. Louis—an economic development organization supporting the Armory project—expressed that data centers can help revitalize the middle class. He points out that such facilities create well-paying local jobs without encroaching on land that could be used for housing.
“We have housing demand surging because we have electricians making $80,000,” Kitchens stated. “Families previously unable to consider homeownership now may have access to it.”
Both the Armory Innovation District and the data center have received necessary municipal approvals, including a conditional use permit and a community benefits agreement. This agreement requires developers to contribute $15.75 million toward various initiatives including infrastructure improvements and environmental justice programs.
Nonetheless, opposition to the project’s magnitude has been steadfast, leading to legal challenges from residents. In August, groups opposed to the project filed a lawsuit contesting the legality of the permit granted for its construction.
Kerry McCullen, one of the plaintiffs, insisted that these massive data centers are unwelcome in St. Louis, stating their commitment to fighting against the development at all opportunities.
Another plaintiff, Daniel Pate, expressed concerns that potential health and environmental risks associated with the data center hadn’t been adequately evaluated prior to the city’s approval.
Developer strikes back
Shortly after, TeraWatt filed its own lawsuit against St. Louis, claiming that the prerequisites imposed by the Board of Adjustment for construction were excessive and illegal.
Lambiaso asserted that a requirement to utilize 2.4 MW of renewable energy would be practically impossible for the 11-acre site and criticized another condition requiring approval of the community benefits agreement from the Board of Aldermen.
Widespread pushback
The rapid expansion of data infrastructure to support AI development has become highly controversial, with significant pushback regarding rising electricity rates, pressures on the grid, excessive water use for cooling systems, noise pollution, and a general unease around AI technologies.
A Gallup poll from May revealed that 71% of Americans are against AI data centers in their areas, reflecting widespread apprehension about their impact.
Interestingly, a recent report indicated that the share of home sales near large data centers has increased significantly since 2018, coinciding with a surge in the number of these facilities.
Local reform
In response to ongoing protests, St. Louis implemented new regulations in September that restrict future data center construction. This legislation, signed by Mayor Cara Spencer, establishes buffer zones around sensitive areas such as neighborhoods and schools, limits noise levels, and mandates a gradual shift to renewable energy.
Alderwoman Anne Schweitzer, who co-sponsored these regulations, mentioned that while the new rules aim to provide safeguards, they don’t resolve every concern about the proposed developments.
“It doesn’t stop data centers from being allowed in the city of St. Louis,” she remarked, noting the issue of utility rate increases still needed addressing.
Meanwhile, Kitchens contends that fears surrounding AI and data centers have been exaggerated. He believes that contemporary facilities no longer contribute to concerns over water depletion, thanks to modern cooling technologies, and that regulations help shield ratepayers from the financial impact of these energy demands.
“The people that we care about need jobs,” he added, insisting that data centers represent a promising future.
Kitchens also acknowledged that while anxieties about AI’s employment impact are valid, he believes that the technology will ultimately create new, unprecedented opportunities. Therefore, delaying local development might not be the best move.
“Should there be regulation of AI? Probably,” he reflected. “But stopping a data center in Missouri doesn’t impede AI development. It just halts progress and prosperity.”
