A proposed data center development will not significantly burden the Festus water supply or raise residents’ water rates, engineers and officials with area water and sewer districts said during a Sept. 23 webinar sponsored by the developer.
At city meetings, members of the public have frequently raised concerns that the proposed project would adversely affect the local water supply and customers’ rates.
A third webinar sponsored by the data center project developer, CRG, sought to address those concerns.
The webinar’s panel included: Chris McKee, president of CRG, the project developer; and Jeff Barnard of Burns & McDonnell, the engineering firm that serves the city of Festus. The engineering firm also represents the Jefferson County Water Authority (which serves Festus and Herculaneum) and the Jefferson County Public Sewer District (which serves Festus among numerous other clients).
In late 2025, CRG announced its plan to develop a hyperscale data center on 361 acres north of Hwy. 67 and west of Hwy. CC. CRG, which is the St. Louis-based data center development arm for Clayco, has estimated the cost of developing the facility at $6 billion.
For the Festus project, CRG would develop the property, and then a data center company would operate it, although no operator has yet been identified.
The project has been a source of controversy since it became known to the public in fall 2025.
In his presentation during the webinar, Barnard with Burns & McDowell said CRG plans to use a “closed loop cooling system” for the data center. He said the center would use far less water than it would if a less modern type of system were used.
“The cooling system for the data center is closed loop, which does not have a continuous demand for water,” he said. “The system will be initially charged with water and will not have an ongoing daily water demand. The water is cycled over and over again.
“Further, the definition of a closed loop identifies that the cooling fluid moves through the sealed piping in a continuous loop. The same fluid circulated over and over again instead of pulling in fresh water and sending it back out.”
The main concern of water usage at the data center, he said, would be having enough water available in the event of fire.
He said improvements would need to be made to the city’s water system.
“The daily water needs for the data center development are limited to potable consumption – or drinking water – which could come from your kitchen or bathroom use, and that use will be by employees working at the data center site,” he said. “The other water demand will be miscellaneous water demands for cleanup or landscape irrigation.
“The largest driver for water infrastructure improvements is fire-flow demand, which is based on code requirements to provide water over a specific period of time at a specific pressure and flow.”
For the purposes of infrastructure improvements, the center would demand up to 300,000 gallons under a peak scenario to support fire flow demands, he said.
“More typically, the demand will be between 30,000 and 50,000 gallons per day,” he said. “These numbers need to be refined as engineering advances.”
He said the Jefferson County Water Authority water treatment plant does not need to be expanded at this time and new private vertical wells would not be necessary.
In response to a question about potential water rate increases, Barnard said, “My understanding is based on the (development) agreement that CRG has with the city, there will be no cost incurred by (existing water system customers) for the improvements needed for the data center. That’s all covered by CRG through the agreement.”
In a written statement after the webinar, McKee said the webinars are accomplishing his goal of disseminating information.
“We’ve been really pleased to see the engagement from the community, and we’ve genuinely enjoyed connecting with people and hearing the thoughtful questions they’ve brought to us,” he said. “This project has been shaped by what we’ve heard from Festus, and we’re continuing that work now as we finalize the water agreement with the city and Burns & McDonnell, which will be posted publicly once complete.
“We hope residents will keep asking questions and joining us for these sessions – everything is available at FestusForward.com.”
The Sept. 23 webinar drew an audience of about 60, according to a CRG spokesperson.
McKee said the webinars do not count as a town hall meeting required as part of the city’s permitting process for the data center.
“The in-person meeting will take place as part of the permitting process, and we’ll schedule it in coordination with the city of Festus,” McKee said. “Once the date is set, we’ll make sure it’s posted on the city’s website and on ours at FestusForward.com so residents have clear notice of when and where.
“These online sessions are in addition to that meeting, not a substitute for it, and we’ll keep holding them.”
More webinars are planned, but the dates are to be determined, he said.