Ferguson approves $1.8 billion data center project

After another contentious meeting this week fueled by public pushback, Ferguson City Council members voted 4-3 to approve tax incentives for a $1.8 billion technology hub and data center proposal. In May, the council deadlocked 3-3 with one abstention, leaving the tax abatement package without enough votes to pass.

The project was first introduced in March. After the May vote, Councilman Nick Kasoff revived the effort to secure tax incentives for the former Emerson campus and introduced a new measure along with Councilwoman LaMika Covington.

Passage of the bill Tuesday night authorizes property tax abatements projected to be worth as much as $1.5 billion and up to $22 billion in industrial revenue bonds. Kasoff said the approved bill will help the city get out of its financial crisis, which has led to numerous layoffs. Another council member, David Williams, agrees with Kasoff, saying the deal will spur economic growth.

“Businesses don’t want to come to Ferguson, now they will,” Williams told St. Louis Public Radio.

Like the previous bill, the newly approved plan calls for redeveloping the 217-acre former Emerson campus. The project’s developer, Next Revolution Technologies LLC, is run by Onder Law founder and managing partner James Onder. The developer has said the redevelopment plan will turn the site into a “technology, energy and advanced manufacturing hub anchored by a data center.”

Supporters say the incentives could transform a largely vacant corporate campus into a major development producing jobs and revenue for a city struggling financially. Critics question whether the tax breaks are too generous and the protections for residents strong enough.

The revised deal comes with several “community benefits,” including Onder’s pledge to commit $7.5 million over 10 years to the Ferguson Neighborhood Improvement Program. Once part of the city, the program now operates as an independent nonprofit that works to boost local property values, fund neighborhood improvements and assist young homebuyers. The pledge drew scrutiny because the nonprofit’s board chair had served as campaign treasurer for several council members who supported the tax incentives. Kasoff disputed claims of a conflict of interest.

The agreement does spell out several protections. It creates a $250,000 environmental mitigation fund that could be used for air quality, noise and heat monitoring and requires water-conserving cooling technology for new data center operations with high cooling demands. It also requires compliance with city noise regulations.

During the meeting, opponents expressed distrust regarding the environmental impacts of the proposal. Specific complaints revolved around noise levels, heavy water usage and potential hikes in local utility bills.

Data centers are increasingly being built in predominantly Black and low-income neighborhoods, sparking a major civil rights and environmental justice backlash across the country. Researchers and civil rights groups refer to this targeted placement as “digital redlining,” a practice in which tech conglomerates exploit cheaper land, weaker local zoning protections and perceived lower political resistance in historically marginalized areas.

During Tuesday’s meeting, resident Richard Buthod told St. Louis Public Radio that passage of the bill would cast a negative light on the city.

“[The world] knows that Ferguson will sell out Black people to somebody that comes in and throws money at the city council,” Buthod said. “You don’t see data centers being built in Ladue.”

Sylvester Brown Jr. is the Deaconess Foundation Community Advocacy Fellow.