After weeks of public debate, packed meetings, and growing interest across Jefferson County, the proposed Festus data center development is now approaching a final decision.

On Monday, March 30 at 6:00 PM, the Festus City Council will vote on whether to approve an Infrastructure Development and Funding Agreement with CRG Acquisition, LLC—the document that ultimately governs how the project would move forward.

The agreement is not a simple approval of a project. It is a detailed, legally binding framework that outlines what the developer must do, what the city receives in return, and how the project is structured over time.

The Scope of the Project

At its core, the proposal is for a large-scale data center campus located on approximately 361 acres north of Highway 67.

The developer has stated an intent to invest at least $6 billion in construction and equipment during the first phase alone, placing it among the largest private investments ever proposed in Jefferson County.

The project is expected to include multiple data center buildings, significant power infrastructure, advanced cooling systems, and roadway and utility expansions tied directly to the development.

While only an estimated 150 permanent jobs are projected, those positions are expected to pay above the county average.

Who Pays for What: Infrastructure Responsibilities

One of the most important aspects of the agreement is how infrastructure is handled.

The developer—not the city—is responsible for funding and building infrastructure required for the project, including roads, utilities, and system upgrades.

The agreement limits those obligations to improvements directly tied to the project’s impact, ensuring costs are not shifted onto taxpayers.

Water, Utilities, and Long-Term Capacity

Because data centers require significant water and power, the agreement includes detailed provisions around utilities.

Within 180 days, a formal Water Infrastructure Plan must be developed outlining sourcing, capacity, and system upgrades.

The developer is responsible for funding any additional infrastructure needed and must work with the city to minimize strain on existing systems.

On the energy side, the developer will cover all usage and costs tied to expanding electrical infrastructure, with projected usage reaching up to 1 gigawatt at full buildout.

Direct Financial Benefits to the City

The agreement outlines multiple direct revenue streams for Festus.

Community development payments total $45 million over 10 years, starting at $3 million annually and increasing to $5 million annually.

The developer is also required to provide a $5 million upfront contribution to fund a new fire station.

Over 25 years, total projected tax and PILOT payments exceed $800 million, with more than $1.3 billion in overall economic contributions.

Understanding the Tax Incentive Structure

The proposal includes a tiered personal property tax abatement structure that decreases over time.

While early years include higher abatements, payments increase in later years through PILOT agreements, ensuring long-term revenue.

Importantly, the agreement does not include real estate tax abatements, utility discounts, or caps on gross receipts taxes.

Neighborhood and Land Use Protections

The agreement includes a voluntary buyout program for nearby homes, offering fair market value plus an additional 10 percent.

It also protects a designated ridge area on the property, limiting development and preserving part of the natural landscape.

Key Legal Reality: The Project Is Not Guaranteed

The developer is not required to proceed unless it formally elects to move forward.

This means approval of the agreement creates the framework for the project, but does not guarantee construction will begin.

What the City Is Agreeing To

The City of Festus agrees to support the project through permitting, coordination, and regulatory consistency.

This includes working with state and federal agencies and maintaining stable development standards for the project.

Monday Night: The Decision Point

The March 30 meeting is expected to be one of the most significant local government decisions in recent years.

Public comment is expected to play a major role as the council considers final approval.

What Comes Next

If approved, the agreement takes effect and the next phase of planning begins.

If rejected, the project as currently structured does not move forward.

This vote will shape the direction of growth in Festus for decades to come.

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