After much discussion over a possible temporary ban on data center proposals in St. Louis, city officials say they will not enact such a moratorium.
First Ward Alderwoman Anne Schweitzer said Wednesday evening that she, along with Mayor Cara Spencer and Board of Aldermen President Megan Green, will announce a plan to address data center concerns without a temporary ban on the developments in the city.
There were discussions last week about a temporary moratorium on data centers, following a memo and presentation from the city’s Urban Design Agency to the city’s Planning Commission.
Schweitzer said the plan will tackle concerns about where and how data centers are built in the city without putting a ban in place.
“It’s about moving thoughtfully — not rapidly — and it's about getting answers to the questions that we have, as opposed to just stopping everything, period,” Schweitzer said of the plan, which she added will use the framework of the city’s existing conditional use process to address data center concerns.
In August, St. Charles officials put a yearlong ban on any data center development after public outcry over a secretive $1 billion data center proposal. Records uncovered by St. Louis Public Radio showed Google may be behind the project, which would have marked its second in Missouri. A $10 billion data center project in Kansas City is currently under construction.
Schweitzer initially called for a temporary ban on data center development, mirroring St. Charles officials’ decision. But she said on Wednesday evening, after discussions with city leaders, that rather than put a stop to any proposals, the city hopes to evaluate data center projects as they appear.
“The point of a moratorium was really because we felt like we (didn’t) have a lot of answers to a lot of questions that are being asked,” Schweitzer said. “The city is working towards putting together thoughtful and comprehensive regulations, and in the meantime, plans to get many questions answered about any data centers that are being considered in the city of St. Louis through the conditional use process.”
She stressed that the city won’t allow any data centers to receive a permit without going through a public hearing going forward. Previously, data center proposals did not always receive public hearings due to the city’s conditional use rules.
The decision comes a week after a memo, written by St. Louis Planning and Urban Design Agency Executive Director Don Roe, said the city's nearly 70-year-old zoning code cannot adequately manage the complex land use concerns brought by data center projects.
Roe included the memo as an informational item ahead of a Planning Commission meeting last week at which Schweitzer and other members discussed data centers in the city.
Roe suggested the city consider “rapidly” enacting zoning regulations to address the land use concerns brought by data centers — including an amendment to ensure data centers are not put in "inappropriate locations” in the interim and an update to a benchmarking ordinance that would ensure transparency over large data centers’ energy use.
Energy demand estimates for these data centers are unprecedented. In the memo, Roe writes the proposed data center in Midtown could use as much energy as 13,000 homes, “roughly the number of homes as in Shaw, Tower Grove South, and Tower Grove East combined.”
State utility regulators are currently considering proposals from Ameren and Evergy on how electric companies will work with these huge data centers. State lawmakers passed legislation this year requiring the utilities to develop terms of service to ensure regular customers’ rates don’t rise because of data centers.
In the memo, Roe also called into question their long-term benefits.
“Like any new construction project, a data center’s construction will create valuable jobs for the period of construction,” Roe wrote. “However, permanent jobs associated with data centers are very limited; compared to traditional industrial uses, very large data centers require only a small number of people to secure and manage the building.”
Following that meeting, Spencer said that though she supported a temporary moratorium on data center development in St. Louis, the city didn’t plan to ban the projects permanently.
“While I have concerns about data centers' effects on the environment, utility prices, vibrancy and urban living, I also recognize their importance to key industries in St. Louis,” said Spencer at the time.
Currently, there are at least 12 data centers in the city and a new proposal for one on Green Street property near the vacant Armory building.
This story will be updated.
