As data center development tied to artificial intelligence expands across Missouri, St. Louis officials are weighing whether to slow that growth locally until clearer rules are in place.
Multiple large data centers are planning to locate in the region, according to Ameren Missouri CEO Marty Lyons, who said some companies have already signed binding agreements. While proposals are spreading into rural counties, only one confirmed project has emerged within the city — a development tied to the Armory site in midtown.
Last month, Alderwoman Alisha Sonnier said she would follow up on concerns raised by residents at a public meeting about whether zoning rules should be established before new data centers are built. Some residents opposed the projects outright, while others raised concerns about electricity, water use and environmental impacts.
Residents question impact, oversight
During the nearly four-hour meeting, resident Adrian Cosby questioned whether the city could effectively regulate large-scale developments.
“I don’t trust the city to actually regulate this when we’ve already said ‘no’ and are once again being pushed to accept something we don’t want,” Cosby said.
Others focused on affordability.
“It might not seem like most people are living that close to the line, but I know that some of my neighbors truly are,” said Sylvia Kueny. “So, when there’s an 11% rate increase, they don’t have 11% to give.”
Resident Stephen Begany said draft proposals could worsen existing challenges downtown.
“Under the current proposal, it would compound our retail problem by requiring more street retail and these data centers competing with the spaces that are already unfilled,” he said.
Armory proposal draws attention
So far, the only verified proposal in the city is a modified version near the Armory center. Under the plan, the historic Armory building would be converted into office space, while a data center would be constructed at the adjacent former Macy’s/Famous-Barr warehouse site.
Supporters estimate the project would create about 600 jobs and generate more than $200 million over 10 years for the city and its schools.
The development team — including Contour, TeraWatt, THO Investments and several St. Louis-based firms — has said it will not seek tax abatements or local incentives. A conditional use hearing with the city’s zoning committee is scheduled.
Zoning debate continues
Sonnier and Alderman Michael Browning proposed legislation that would pause new data center development until zoning regulations are in place. The proposal, like a similar bill introduced earlier, failed to pass.
“We were asking for a pause until there were zoning regulations,” Sonnier said. “The public … were just asking for a chance to have these regulations in place.”
City officials are now considering interim zoning rules that would limit where data centers can be built and require developers to obtain conditional use permits.
Energy demands drive concerns
The debate comes as data centers become central to modern computing, particularly with the growth of artificial intelligence.
A single AI query uses a small amount of electricity — about the same as running a 10-watt LED bulb for two minutes. At scale, however, millions of daily requests can consume vast amounts of energy, potentially rivaling the power use of small countries, according to researchers.
The proposed Armory facility would operate at about 120 megawatts, placing it among the largest energy users in the region.
Who pays?
Questions about energy demand have led to concerns about rising electricity costs.
Ameren officials have said large data centers will not directly increase rates for residents. However, during a Public Infrastructure and Utilities Committee meeting, James O’Mara, the company’s manager of economic development, said all customers would help pay for expanding the grid to accommodate “large load” users.
A state law signed last year allows utilities to charge customers for infrastructure projects under construction, and analysts have warned that growing demand could increase long-term electricity costs.
Economic benefits debated
Supporters say data centers could bring jobs, investment and help position St. Louis in a growing technology sector.
Mayor Cara Spencer has emphasized the importance of remaining competitive.
“We want to be open for business,” she said. “We recognize that data centers play an important role … in attracting technology companies.”
Business and labor leaders have echoed those concerns.
“All we’re asking is that … we don’t push an industry away,” said Tim Green of a partnership between IBEW Local 1 and area contractors.
But critics question whether the long-term benefits match the promises.
“These centers are not like large manufacturing facilities that will hire thousands of workers,” said James Busch of the Missouri Public Service Commission.
“Is there any justification for forcing everyone to pay for their energy use?” asked Ari Peskoe of Harvard Law School.
What comes next
City planners are continuing to review public feedback and develop a regulatory approach.
“We’re going to take the feedback … and refine that to make the best possible regulations we can,” said planning official Rasmus Jorgensen.
Any proposed rules would be reviewed by the Planning Commission and then considered by the Board of Aldermen.
For now, the debate reflects a broader question facing St. Louis: how to balance the potential economic benefits of a growing industry with concerns about cost, infrastructure and community impact.
Sylvester Brown Jr. is the Deaconess Foundation Community Advocacy Fellow.