Missouri data center boom sparks GOP primary backlash over tax breaks, secrecy, and water use

Missouri's data center fight has moved beyond a county development debate and into state politics. Multibillion-dollar Amazon and Google projects along I-70 have helped make tax incentives, secrecy, and growth pressure a campaign issue in Republican primaries, as reported by The Missouri Independent.

What's happening?

A dispute over incentives in Montgomery County is intensifying as local officials consider a major package for a planned $15 billion Google data center while Amazon is already building nearby, according to The Missouri Independent.

For Google's 934-acre site outside New Florence, one proposed deal would reduce the company's personal property taxes by 70% for 25 years.

Speaking to county commissioners, Montgomery County farmer Bill Cope said he does not object to schools or the health department getting more money from the project, but he does oppose the abatement.

"I'm against the abatement part of it, because if [data center developers] are that good, they should come in, and we would welcome them. But pay your fair share," he said.

Both developments sit within a 5,000-acre industrial megasite, and at least five data centers have been proposed across a 30-mile corridor west of St. Louis. Ahead of Missouri's Aug. 4 primary, Republican candidates such as state Reps. Tricia Byrnes and Don Mayhew are pressing for stronger oversight before more agreements advance.

Why does it matter?

Data centers are becoming increasingly important to the AI boom, with ties to the power grid and local water supplies.

AI tools can help improve forecasting, streamline industrial operations, and optimize clean energy systems. But the facilities that train and run those systems can also require enormous amounts of electricity and water, potentially increasing costs for other customers or putting pressure on local resources if oversight is limited.

In Missouri, lawmakers have debated whether residents could end up subsidizing the infrastructure needed to serve these massive facilities.

Proposed legislation would have required higher utility rates for very large power and water users, including customers above a 50-megawatt annual peak demand and those using more than 2 million gallons of fresh water per day.

The developments have also raised concerns about land use and public trust. Cope said a land sale to Amazon cost him roughly 300 rented acres, adding strain to the 1,200 acres he still farms.

Public opposition has also been significant: the Missouri Rural Crisis Center said nearly 85% of 1,461 respondents in a county survey opposed the New Florence developments.

The timing of the survey is at the center of the frustration. "An informational meeting at this time, when all the contracts have been signed and construction is already underway, is almost pointless," retired conservation agent Tom Westhoff said.

What's being done?

Missouri Republicans are increasingly advocating new limits and procedures for large data center projects.

Byrnes has said she wants legislation requiring public comment periods for major data center proposals and limiting nondisclosure agreements that prevent local officials from seeking outside advice. "When you're given an NDA, you start to become fearful if you can ask experts questions you might have, and I want to stop that from happening," Byrnes said.

Mayhew joined 15 other lawmakers in urging Gov. Mike Kehoe to convene a special session, warning that "The rapid emergence of large-scale data centers and artificial intelligence technologies is creating challenges that existing laws were never designed to address."

Meanwhile, state Reps. Colin Wellenkamp and Mike Costlow have backed measures focused on utility rates, water permitting, and notice requirements, arguing that communities need better information before deciding whether to move forward.

The backlash in Missouri reflects a broader national debate over who benefits from the AI buildout — and who pays for it.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.