Montgomery County data center project comes into focus

The proposed data center for Montgomery County is still in its predevelopment phase, according to local officials.

Steve Etcher, a consultant with the Greater Montgomery County Economic Development Council, said that the due diligence process is being completed to define potential projects and potential proposals.

Etcher outlined that in 2022, Montgomery County began an initiative to develop and create a master plan for a megasite industrial park. He said that in 2021-2022 the state of Missouri commissioned a study to determine if the state needed a megasite and if so where the ideal location might be. Etcher noted that in that study, one of the ideal locations outlined was the intersection of I-70 and Highway 19. He said a site in Montgomery County is ideal because it has large access to developable land, direct access to I-70, a mainline track of Norfolk Southern going through the heart of the area and one of the largest bulk electric substations in the state is located at Highways 19 and WW. Also Etcher noted that the location is within a 40-mile commute of half a million potential workers.

From that, the state provided funding to Montgomery County to create the master plan for such a megasite to lay out the overall vision. What resulted is the Heart of America megasite in New Florence.

In mid-2024, with the emergency of data center projects, Etcher said what potential data center developers saw in the location was robust power and a planned industrial development of scale.

Etcher said there have been numerous inquiries about the potential to acquire land for a proposed data center site and that right now potential developers are working with Ameren to determine potential power commitments for a possible project.

He said that currently there have been no formal commitments on a project, but expected some movement within the next three to nine months.

He said that the status of the details of any potential project are in a similar position to another proposed project in Warrenton, in that an owner/operator has not yet been identified and so specifics like how much water may be used to cool a data center facility is not known yet.

He said once an owner/operator is identified specific information can then be provided to local leaders so that they will have clarity on water utilization.

He said he is hopeful that any project could advance to the construction phase by 2026, although he noted that the full build out on the project will be wholly dependent on the amount of power available.

He said based upon the potential size in excess of a million square feet, construction will probably occur over several years, beginning in 2026 and continuing though 2031.

Before a project can begin, Etcher noted that agreements will need to be finalized with Ameren, which he said can be a slow process as it is quite complicated.

“We are getting closer, much closer,” he said regarding a proposed project.

County commissioners weigh in

County officials are anxiously awaiting to discover the specifics of a project in Montgomery County. On Oct. 6, the commissioners spoke with reporters about the status of the project in Montgomery County.

As an initial note, Presiding Commissioner Ryan Poston said that no formal plans have been submitted to planning and zoning, the first step in approval for any projetc like a data center in the county.

“We need to see a plan,” Poston said. “How much water is going to be used. You need a plan to know where you are going with a project.”

1st District Commissioner Dave Teeter said there is quite a lot of discussion on social media about this project already being a done deal. But Teeter reiterated that the commissioners have been presented with no proposals presently.

Teeter said the only request of any kind that might be related to the project is a possible road relocation project for Buechele Road.

“That’s the only formal bit of information we have been given,” Teeter said. “It’s not a specific company that has approached us.”

Poston said the application for a possible road relocation was July 1. Then it has to sit for a quarter before it can be acted on in the next quarter, Poston said, amounting to approximately a six-month process.

2nd District Commissioner Doug Lensing said the commissioners have had no direct talks with any companies.

Teeter said planning and zoning has policies in place relating to water usage.

“They (planning and zoning) are trying to be prepared if it comes to them,” Teeter said.

Poston said planning and zoning has met with engineers as well to try to learn more about potential impacts of a data center including how water tables might be affected in Montgomery County.

Poston said one of the things the commissioners have been trying to explain to residents is that aquifers used by residents, Montgomery City and to be used by the data centers are at different levels of the substrate.

Teeter added that the commissioners have done as much due diligence as they can to gather information on the issues presented by residents. Specifically he said that they have researched water concerns, electric usage concerns, even concerns such as sound and lighting of such facilities.

Teeter spoke about a recent trip to Altoona, Iowa to view a Meta data center and the things he observed there.

He touted Meta’s efforts to be a good business partner and a good contributor to the community.

Teeter also discussed the tax benefits to the community.

“The amount of tax dollars is staggering,” he said. “Your schools, your county health department, your local fire department, your ambulance district, your Senate Bill 40, all of those are taxing entities in our county. They would have a big shot in the arm.”

Lensing said, “It will create a situation where you will not have additional people utilizing the services, yet we will have the ability to fund those services at a level competitive with any of our local counties.”

Lensing added that Montgomery County will no longer be a training ground for dispatchers and EMTs, but will be able to pay a competitive rate and keep them.

Teeter said that when the facility is fully operational, the additional tax revenues could cause residents to see a reduction in their own taxes.

Teeter referenced the South Callaway R-II School District having to lower their rates due to the funding they were receiving from tax revenues from the Callaway Nuclear Generating Station.

At one point during the discussion Poston mentioned that Montgomery County had a crisis at its 911 center two years ago for about a month.

Poston said the county had to contract with Motivations to get dispatchers to come to the area to help. He said it has been steady, but there has been a lot of turn- over there historically due to the inability of the county to pay more competitive wages.

Poston added that one of the other benefits during the build out of a potential facility is continuously employed construction workers to build the facility. He said in Altoona, Iowa, Meta has averaged 400 to 600 construction jobs every year for over a decade of building.

The commissioners also spoke about the need to create opportunities to keep young Montgomery residents here at home.

“These other places have been stealing our brain power for far too long,” Poston said.

Teeter added that being an educator until he retired he would love to see young people stay in the county, but often there are not enough opportunities for young people to pursue locally.

“We have to have opportunities here locally,” he said. “Our population is getting older and that is not sustainable.”

With respect to incentives the commissioners discussed economic incentives for data centers.

Lensing said there was no need to give up anything from an economic standpoint to get data centers to come here.