A tentative data center agreement has been reached between Festus city leaders and CRG, the data center project developer that projects a financial windfall for the city and will offer buyouts to those who live near the proposed facility on property north of Hwy. 67 and west of Hwy. CC.
In a public statement released today, March 20, as part of the council’s Monday, March 23 meeting packet, Mayor Sam Richards said, “A framework has been reached to a development agreement with CRG for the data center project. I have reviewed the terms for such an agreement, and I believe it will provide tremendous benefits to the people of Festus and to Jefferson County. I intend to support this proposal.”
Richards describes the CRG development project as a $6 billion initial investment in the community, with: an estimated $1.3 billion in property taxes, utility taxes and community benefit payments over 25 years; an estimated benefit to the community of more than $53 million annually; significant, direct community benefit payments totaling $45 million over 10 years starting at $3 million the first year; and also including a payment of up to $5 million for a new city firehouse.
The city has negotiated a commitment from CRG to not request real property tax abatement for the data center and there will be no cap or abatement on the city’s utility taxes, Richards said. In turn, the city has agreed to support the developer’s application to the Jefferson County Port Authority for partial personal property tax abatement, he said.
For those who live closest to the project, he said, the city would establish a voluntary buyout program to be administered by CRG for 11 houses on Glenkee Court and one other house to the north of the property.
Information from the city in the March 23 City Council meeting packet includes the following site plan stipulations subject to final site plan approval:
-- First Community Benefit Payment directly and exclusively to the city to be made within 60 days of start of construction.
-- Developer agrees to enter into preliminary funding agreement of up to $500,000 for the city’s development costs, with the first $100,000 due upon signing; thereafter the city may submit monthly invoices for reimbursement of actual costs incurred against the remaining $400,000 balance.
-- Developer to comply with all current local, state and federal environmental standards.
-- Developer will enter into a binding agreement with Ameren that ensures the developer is responsible for all energy usage and expanded energy structure.
-- All water and sewer improvement and mains required by the developer are to be paid by the developer.
-- Developer agrees to purchase water exclusively from the city to the extent the city can supply at volumes and pressures as determined by the parties’ mutual engineering consultants, required for the development and by the date needed to meet the developer’s building out schedule.
-- Developer agrees to not build private wells and all water infrastructure constructed by developer shall meet the city’s existing standards for flow and pressure.
-- All required additional infrastructure or plant upgrades/expansion for the city and the Jefferson County Water Authority and related costs shall be paid by the developer subject to mutual review and approval of scope of cost.
-- Developer agrees to meet all sewage discharge requirements.
-- Developer agrees to use advance cooling technologies, work in good faith with the city to make the project acceptable to both parties, with no adverse impact to the city’s water supply as determined by the city’s engineering consultant.
-- Developer shall comply with all applicable noise and light city ordinances,
-- Hwy. 67 will serve as the primary construction access route for the project and Hwy. CC will serve as the secondary access route.
-- The developer will fund necessary street and traffic improvements subject to mutual review of scope and cost.
-- The voluntary buyout program eligible properties were identified by the developer through a site proximity analysis of residential homes within 1,000 feet of the project area. The purchase prices to be based on fair market value as of June 1, 2025.
-- The developer intends to maintain the ridge line and tree buffer along the ridge near Glenkee/Ashford Place.
Council meeting moved to high school
The data center project will be the topic of a Festus City Council work session and public meeting Monday, March 23. Anticipating a large crowd, the meeting has been moved to the Festus High School gymnasium.
At the 5:30 p.m. work session, the council will see a presentation of the tentative terms and framework for the data center development.
The council’s regular meeting will begin at 6 p.m. at the gym, 501 Westwind Drive. As of Friday afternoon, 32 residents had signed up to speak. Those interested in speaking on the topic may still register to do so by 2 p.m. March 23.
CRG of St. Louis announced in late 2025 it plans to develop a data center on property north of Hwy. 67 and west of Hwy. CC in Festus.
CRG President Chris McKee has said CRG, which is the 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. Clayco is the same company that in August 2025 withdrew its plans to develop a 440-acre data center in St. Charles following a public outcry against it.
As those proposed data center plans in Festus became public, public opposition soon arose.
“I committed to you earlier that the terms of an agreement would be presented to the public prior to review and consideration by the City Council,” Richards also said in the March 20 statement. “We know that a lot of you want to be heard on this matter. Therefore, we are moving our March 23 City Council meeting to the Festus High School gymnasium to accommodate the community. We will also hold a special meeting on (March 30) for the City Council to consider approval of a development agreement.”