JEFFERSON CITY 鈥 Mum鈥檚 the word on data centers at the Missouri Capitol this year as top lawmakers and Gov. Mike Kehoe agree the Legislature should not touch the issue roiling communities across the state, including the 最新杏吧原创 region.
Instead, they say, legislation passed last year allowing utility companies to charge data centers higher rates for electricity already addresses some residents' concerns that a flurry of massive data center projects听鈥 including more than a dozen proposed in and around 最新杏吧原创 鈥 will send electricity rates soaring and overtax local water resources.
鈥淭here were protections in that so that your utility rates aren鈥檛 going to go up just because of the data centers,鈥 Missouri House Speaker Jon Patterson, R-Lee's Summit, said at a March 12 news conference.听
Rep. Colin Wellenkamp disagrees. Wellenkamp, a Republican, represents St. Charles, where debates over a proposed data center embroiled City Council and led to a yearlong moratorium听on new facilities.
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Residents from Warren to Jefferson counties flocked to Wellenkamp's March 19 town hall at a Chicken N Pickle in St. Charles to call for the state to intervene in the proliferation of data center projects.听
Rather than opposing data centers outright, Wellenkamp and Rep. Mike Costlow, R-Dardenne Prairie, want to beef up last year鈥檚 protections.
鈥淭he AI economy is not going anywhere. It's only going to grow,鈥 Wellenkamp said. 鈥淚t's better that we control it and put in guardrails rather than try to shut it out.鈥
The two lawmakers introduced identical proposals: and . The bills would make last year's law apply to all electric utilities, not just investor-owned ones,听and would create new regulations for water use.
The House Conservation and Natural Resources Committee will discuss the Wellenkamp and Costlow bills听and hear public testimony Monday.听
Prospects for the bills appear slim, however. Senate President Cindy O鈥橪aughlin, R-Shelbina, has expressed no appetite for the topic.
鈥淚 don鈥檛 see anyone bringing it this year,鈥 she said. 鈥淭hat could happen next year.鈥
Footing the bill
The surge of data center proposals comes 10 years after Missouri lawmakers created a sales tax exemption program to lure such facilities to the state. To date, at least 13 data center projects have been approved for the tax exemption.
The allure for state leaders is obvious.
鈥淵ou've got to remember: Some of these investments are billions of dollars, and some of those areas will never see billion-dollar investments,鈥 Kehoe said last month. Tax revenue听from data centers can lower property taxes and school levies, he added.
The flood of proposals and talk of the increased need for hyperscale data centers in the past two years, however, has been met with pushback from residents concerned about high water demands and electricity use straining utility grids.
Additionally, data centers鈥 high electricity and water use can accelerate demand for new power plants, transmission lines and water infrastructure. The fear among opponents is that ordinary Missourians will be forced to foot the bill for that.听
Among other things, last year鈥檚 aimed to prevent Missourians from having to pay for 鈥渦njust or unreasonable costs鈥 from new data center construction.
It allows publicly traded utilities听鈥 such as Ameren and Evergy, the state鈥檚 two large electricity providers听鈥 to charge special rates, called tariffs, on data center operators and large-load users. The rates are meant to ensure data center operators pay for infrastructure, including power plants and transmission lines, needed to serve them.
鈥淚 think that鈥檚 a great consumer protection piece,鈥 Kehoe said of the law.
In November, the Missouri Public Service Commission 听a large-load tariff for both companies.
The law, however, does not affect cooperatives, such as Callaway Electric Cooperative, or municipally owned electric companies, such as Springfield鈥檚 City Utilities.
Wellenkamp and Costlow's bills would extend the requirement to municipal and cooperative utilities, which are not regulated by the Missouri Public Service Commission.
Municipally owned utilities are of particular concern for Costlow. City governments control the utility, so the same organization that controls rates also stands to benefit from the taxes generated by data center construction and operations, he said.
鈥淲hat's to stop them from saying: Well, we'll just give you some really low rates, and the rest of our electric customers are going to have to carry some of that so we can entice you to come in,鈥 Costlow said.
His bill would eliminate that risk, he said.听
Costlow and Wellenkamp also want to put data center developers on the hook for water infrastructure upgrades. Their bills would expand last year's regulation to properties that use more than 2 million gallons of water daily or if a data center, combined with other water users, would cause a locality's water use to reach more than 80% of its capacity.
Under the bills, such users would require a permit from the state DNR. The permit requirement adds a layer of transparency, Wellenkamp said, because applicants would need to disclose their water and energy use.
The measures also aim to address concerns about large-load users sucking up resources and leaving residents without power or water during storms or other emergencies that strain the electric grid. The bills would allow utilities to cut back on power or water to data centers when supply is compromised.听听
Transparency听
Rep. Marty Joe Murray, D-最新杏吧原创, said he would like to see additional transparency requirements on data center projects.
Nondisclosure agreements have muzzled local officials, frustrating residents who want to know the data centers' end users.听
Servers used to generate cat videos is one thing, Murray said.
"But if it's using that AI data center to perpetuate surveillance on communities, that's another conversation," he said.听
State lawmakers lack the authority to bar local officials from signing NDAs, Wellenkamp said.
The Department of Natural Resources does not monitor electricity use from large-load users, according to Connie Patterson, communications director for the agency.
Wellenkamp said his efforts have not put him at odds with leadership in the General Assembly.听
"I'm fighting for my folk," he said. "Leadership completely respects that."
Here's what you need to know about data centers in the 最新杏吧原创 area. Reporting by Bryce Gray, video by Jenna Jones.





