Festus city officials announced this morning, Feb. 25, a St. Louis-based company is ready to begin negotiations on a proposed data center project on property north of Hwy. 67 and west of Hwy. CC.
City officials also announced the city is looking to hire an economic development consultant for potential incentives for the development,
CRG, which is a St. Louis-based data center development arm for Clayco, would develop the property, and then a data center company would operate it, although no operator has yet been identified.
On Nov. 10, 2025, the Festus City Council agreed to annex 240 acres of the 370-acre property site of the proposed project that previously were outside the city limits. The other 130 acres were already located inside the city and did not need to be annexed.
Many residents have protested the project, citing concerns of how it would negatively affect the public’s water and electricity use, increase noise levels, hurt property values and other related issues. Project opponents have also criticized city officials for what the opponents say has been a lack of transparency in their dealings with CRG.
In a statement posted on the city’s website and Facebook page today, Mayor Sam Richards said CRG attorneys have notified the city that the company “is ready to negotiate the terms of a development agreement with the city regarding the proposed data center.”
“My goal is for the city to negotiate an agreement with the developer that will lock in long-term benefits for the city of Festus and its residents, and that will set expectations for the developer to address the concerns that we have heard from you over that last few months,” Richards said in the posts.
City officials announced today that the council will meet at 6 p.m. Thursday, Feb. 26, at City Hall to consider an ordinance authorizing the mayor to hire MarksNelson Advisors LLC “for economic development incentives consulting services.”
If the consultant is hired, Richards said in his posts, Steve Etcher of MarksNelson of Overland Park, Kan., would attend a council work session at 5 p.m. March 2. The City Hall work session, he said, would bring together council members with representatives of the Festus R-6 School District, Jefferson College, Jefferson County, the Joachim-Plattin Ambulance District and the Jefferson County Sheriff’s Office to discuss their expectations for a community benefit agreement with the developer.
Once a tentative agreement is reached, Richards said, the public would have an opportunity to review it prior to a council vote on the agreement. If the council approves such an agreement, the developer will be required by city ordinance to schedule and attend an informational meeting “to describe the project and the proposed sound-mitigation measures, prior to the commencement of construction.” The developer would also be required to comply with all data center regulations covered by city ordinance, Richards said in the posts.