Judge Rules Against Midtown Data Center Conditions

A St. Louis circuit court ruled that the Board of Adjustment exceeded its authority in imposing renewable energy and aldermanic approval requirements on TerraWatt's proposed project.

Updated on Nov. 13, 2026 in Data Centers

Judge Rules Against Midtown Data Center Conditions

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Circuit Court Judge Christopher McGraugh ruled the Board of Adjustment exceeded its authority in imposing renewable energy and aldermanic approval requirements on TerraWatt's proposed $3.1 billion Midtown data center near the historic Armory. TerraWatt must still sign a community benefits agreement with the Land Clearance for Redevelopment Authority, without aldermanic approval.

Why it matters

The ruling clarifies how far local boards can go in attaching conditions to a conditional use permit for a data center in St. Louis, a city that had no data center regulations when the project was first pitched. The pending civil lawsuit filed by opponents in August means the project's path forward in the city remains unsettled.

The Board of Adjustment required TerraWatt to supply at least 2.4 megawatts of renewable energy onsite, a condition the court has now ruled exceeded the board's authority. Whether the site can produce that power on its own remains unresolved, as TerraWatt representatives have stated the parcel is not large enough.

The players

TerraWatt

TerraWatt is the developer behind the proposed $3.1 billion Midtown St. Louis data center project.

The details

TerraWatt plans to transform the old Famous-Barr warehouse at 3728 Market Street into a data center. The Board of Public Service approved the conditional use permit in summer, and opponents appealed to the Board of Adjustment, which upheld the permit after 11 hours of public comment in July and added five conditions.

July 2026: The Board of Adjustment heard 11 hours of public comments on the project.
August 2026: Opponents sued to stop the data center project.
June 2027: TerraWatt is expected to begin construction.
End of 2029: The office portion of the project is expected to be occupied.

Tech Race

The case tests how St. Louis applies its existing conditional use permit process to large data centers, a question many cities are facing as AI-driven facility construction expands. The ruling will shape how local boards weigh energy and community conditions against developer authority.

Residents near Midtown and the Armory could see construction begin around June 2027, with the office portion occupied by the end of 2029. The project is estimated to produce roughly $140 million in city taxes and $206 million for St. Louis Public Schools over 10 years.

The takeaway

Local permit conditions for large data centers can be challenged in court, and the outcome depends on whether a board stays within its legal authority. Residents following the project should watch the pending lawsuit and the still-unsigned benefits agreement.

What happens next

TerraWatt must still sign a community benefits agreement with the Land Clearance for Redevelopment Authority, and the lawsuit against the project remains pending.