In the never-ending race to keep US at the centre of all global development, a fight has ensued between citizens and developers. While previously one could spot a cafe or grocery store at short intervals in America, it has now been replaced with a data centre at every turn. While some have willingly sold their land for the development of these hubs, others have been forced to do so by the townships. All of this, because the deemed “futuristic” data centres are necessary to support the massive computing power required by AI and fulfil the dreams of the world’s rich.One such city whose landscape is currently changing day by day is America’s brewing capital, St. Louis. The city is seeking to reinvent itself as a tech hub by planning a sprawling new technology park anchored by a giant data centre, a project that is already facing public backlash and legal battles, according to Realtor.com.A city of roughly 280,000 people, St. Louis already hosts more than a dozen operational data centres, with three more currently under construction in the area and up to 10 more in various stages of planning. Among the most controversial of these is the 120-megawatt, 525,000-square-foot hyperscale facility slated for Midtown St. Louis. The chosen site previously housed a Macy’s and Famous Barr warehouse adjacent to the historic Armory building.The data centre, co-developed by TeraWatt Infrastructure—a San Francisco–based company that specialises in commercial electric vehicle-charging networks—is envisioned as the linchpin of the privately funded $3.1 billion Armory Innovation District. Located alongside Interstate Highway 64, the long-vacant Armory building, which previously housed a tennis training centre, an entertainment complex and a sports venue, is poised to be converted into 214,500 square feet of high-tech office and creative space.According to developer statements, the district project will create more than 1,000 temporary union construction jobs and 200 permanent on-site positions. Prohibited from seeking tax abatements, the centre is projected to generate $432 million in tax revenue over its first decade, with nearly half of the amount going to St. Louis public schools.
The future vision
If development proceeds on schedule, construction will get underway in August 2027 and conclude by late 2029. Supporters of the project say it will give the local economy a shot in the arm. “Data centres allow communities to repopulate the middle class,” Ron Kitchens, CEO of Greater St. Louis, the metro’s leading economic development organisation championing the Armory project and other local data centres, told Realtor.com. According to Kitchens, data centres like the TeraWatt development are a boon to the local housing market because they create well-paying jobs for local residents without consuming land that could have been used for residential construction. “We have housing demand coming on because we have electricians making $80,000,” argued Kitchens. “Families that could not talk about homeownership now have access to it.”The Armory Innovation District and the adjacent data centre have secured key municipal approvals, including a conditional use permit and a community benefits agreement. Under that agreement, developers are required to contribute $15.75 million toward infrastructure, digital access, job retraining for workers affected by artificial intelligence, and environmental justice activities.
A resisting community
However, opposition over bringing a data centre to Midtown St. Louis has led to legal action on both sides. In August, opponent groups filed a lawsuit challenging the project’s use permit, claiming that the decision to grant it was made “contrary to law.”“These hyperscale data centres are not welcome in St. Louis, and the residents are going to continue to fight tooth and nail at every chance we get to stop them,” plaintiff Kerry McCullen told St. Louis Public Radio at the time.Fellow plaintiff Daniel Pate claimed that potential negative health and environmental risks related to data centres were not thoroughly studied and taken into account before the project was green-lit by the city. “The city is bending and twisting themselves into pretzels to try to get this thing through,” Pate said.
A strong developer
In retaliation, just weeks later, TeraWatt, the company behind the Midtown data centre, filed its own lawsuit against the city of St. Louis, reported St. Louis Public Radio. In the complaint, TeraWatt partner David Lambiaso alleged that two conditions the Board of Adjustment imposed as prerequisites for the construction are illegal and exceed “the scope of authority” of the board.According to the lawsuit, forcing the data centre to use 2.4 MWs of renewable energy would be “practically impossible” on the 11-acre site. Lambiaso also took issue with a provision requiring the city’s Board of Aldermen to approve the community benefits agreement.
Halting data centre development
In response to local protests and months of heated debates, St. Louis in September enacted a set of rules restricting future data centre construction and operation within city limits, reported the station KSDK. Signed into law by Mayor Cara Spencer, the legislation establishes buffer zones between data centres and sensitive areas like residential neighbourhoods and schools, imposes caps on noise levels, and requires facilities to transition to renewable energy over time. Alderwoman Anne Schweitzer, who co-sponsored the bill touted by Spencer as “nation-leading,” acknowledged that while the rules provide important safeguards, they fall short of addressing every concern.“It doesn’t stop data centres from being allowed in the city of St. Louis,” Schweitzer said. “It doesn’t prevent every single harm that could be caused. It doesn’t protect ratepayers from the increases in their utility bills that we should expect.”While Kitchens acknowledged that people’s anxiety about the impact of AI on their employment is not unfounded, he believes the technology will create new opportunities that never existed before. Consequently, stalling local development is a losing strategy.“Should there be regulation of AI? Probably, but not building a data centre in Missouri and building in Taipei or Chile doesn’t stop AI. It just stops prosperity,” he argues. “We’re going to lose twice.”
A larger fight
The backlash against data centres is not limited to St. Louis. The rapid expansion of infrastructure necessary to support AI buildout has been a highly controversial and opposed topic in the United States for the past few years. Surging electricity rates, grid strain, high water consumption for cooling systems, noise pollution near residential areas, along with the broader suspicion of AI, have united people. In May, Gallup’s first poll on data centre construction found 71% of Americans oppose AI data centres in their local area.The technology remains unregulated at the federal level, despite recent high-profile appeals for guardrails and safety controls from industry leaders, including Anthropic’s Dario Amodei and OpenAI’s Sam Altman.
