Data centers in Missouri would have to follow a set of requirements on electricity and water usage under legislation recently introduced in the House.
"It's going to work on keeping our utility rates stable so that our folks throughout Missouri, not just St. Charles, but throughout Missouri, are not subject to price jolts and shocks," said Rep. Colin Wellenkamp, R-St. Charles.
Wellenkamp and another St. Charles County Republican, Rep. Mike Costlow of Dardenne Prairie, have filed legislation titled the AI Infrastructure, Grid Integrity and Water Resource Protection Act. They spoke to reporters about the bill on Wednesday.
The legislation focuses on both electricity and water regarding data centers and, according to the sponsors, extends off a utility bill passed last year in the legislature.
On the electric side, the legislation requires large-load consumers, like data centers, that come to Missouri to pay for the necessary costs to provide them with electricity, including grid infrastructure upgrades.
"We have to make sure that that cost is not passed on in any situation to consumers. We want to protect our residents first, before we start to look to reap the benefits of this kind of investment into our state," Costlow said.
The water infrastructure section of the bill involves a permit requirement from the Department of Natural Resources for large water users.
"If your facility is going to use more than 2 million gallons of fresh water per day, which is a lot, or 80% of the available capacity of that locality, you have to seek a DNR permit to do that," Wellenkamp said.
If water usage goes even further, Wellenkamp said the bill would require the building out of freshwater capacity for the locality so that "no one is left in an insecure water environment."
"We want AI infrastructure. We want a data driven economy. We want that development in our city. We want it in our county. It has to be done right," Wellenkamp said.
According to Wellenkamp, doing it right means not compromising resources.
Cities are grappling with how to proceed concerning the increase in data centers in Missouri.
Wellenkamp's district includes part of the city of St. Charles, where a yearlong moratorium on data centers was enacted last year. The St. Charles Planning and Zoning Commission voted this month to delay a vote on a proposed ban on data center development.
In March, St. Louis' Zoning Section will hear a data center proposal after months of debate over the project.
Ultimately, Costlow said his bill is not intended to be against data centers or AI.
"We have a lot of the strengths that data centers are looking for. We have a lot of water. We have some of the cheapest power in the United States. We have some of the best data connectivity on long haul, dark fiber of anywhere in the Midwest," Costlow said. "This is a place that data centers can come with very little impact, as long as we put the right guardrails around them."
The legislation in the House hasn't been sent to a committee yet, meaning it still has a long path to passing both the House and Senate.
Wellenkamp hopes the legislation gets a hearing quickly.
"It has a lot of interest. It has a lot of movement. But I would say, more importantly, and this is the best arrow in the quiver, it has a lot of urgency," Wellenkamp said.
The legislation is HB 3362 and HB 3364
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