Missouri is grappling with a massive influx of data center proposals, demanding unprecedented power. Utilities like Ameren are scrambling to secure the grid and protect customers from surging costs. Is the Show-Me State ready to power the future of tech, or will residents bear the brunt of this digital expansion?

Missouri is at a critical juncture, facing a burgeoning demand for massive data centers that could reshape its energy landscape and economic development future. While one municipality, St. Charles, recently rejected a significant data center project and halted further proposals for a year, the underlying pressure for such developments remains immense.

The scale of this demand is highlighted by Ameren Missouri, which has received at least 37 distinct requests for similar high-energy projects aiming to connect to the local power grid. These prospective ventures are part of a broader “economic development pipeline” comprising nearly 100 projects as of May, including numerous large manufacturing facilities eyeing the St. Louis region.

The potential power consumption of these proposed data centers is staggering, projected to eclipse the needs of the largest existing electricity users in the St. Louis area by many times over. This unprecedented demand presents a significant challenge to the existing power infrastructure and necessitates urgent strategic planning by utility providers and state authorities regarding Missouri energy.

Consequently, utility executives from Ameren and Kansas City’s Evergy, alongside state officials, are actively working to establish new rules and rate structures specifically designed for these “large-load” projects, defined as those requiring over 100 megawatts—equivalent to the electricity demands of approximately 18,000 homes. The goal is to create a framework for robust utility regulation that can accommodate and fairly finance these colossal energy requirements.

A primary concern for Ameren and Evergy is the risk of ratepayers bearing the cost of expensive electricity infrastructure upgrades if long-term financial guarantees from data center developers are not secured. State officials are keenly focused on safeguarding existing customers from potential unfair charges, while major tech companies like Google and Amazon are actively participating in these utility regulation debates, advocating for terms that benefit them while emphasizing the economic benefits these projects can bring to economic development.

This situation presents a delicate “balancing act” for officials, who aim to attract new businesses and foster economic development while ensuring that significant energy consumers contribute equitably over the long term, as articulated by Ameren Missouri’s director of regulatory affairs, Steve Wills. Despite the high volume of proposals, Ameren’s historical data suggests that only about 10-15% of new business attraction opportunities in the state typically materialize.

A significant economic risk identified by Geoff Marke, chief economist for the Office of Public Counsel, is the potential for an “overbuild.” This scenario could see utility customers funding substantial power grid upgrades or power generation facilities for future users that might not ultimately materialize, cease operations, or become technologically obsolete. Marke draws a compelling parallel to the internet boom around 2000, where initial fears about Missouri energy demand proved unfounded due to technological advancements, and notes similar efficiency gains now being observed in artificial intelligence, such as with the Chinese AI platform DeepSeek.

To mitigate these risks and ensure equitable contributions, the Office of Public Counsel advocates for measures such as requiring prospective large-load customers to pay deposits, like Evergy’s proposed $200,000, to cover the costs associated with studying power grid interconnection requirements. This proactive approach aims to ensure that the data center development of new power infrastructure is both justified and financially sustainable.

The dynamic landscape of data center development in Missouri was underscored last week; even as the St. Charles project faced rejection, Meta (parent company of Facebook, Instagram, and WhatsApp) successfully inaugurated its own data center in Kansas City, illustrating the ongoing and accelerating trend of these major infrastructure investments impacting Missouri energy.