Is a St. Louis Investor Transforming the Armory into a Data Center?

The Armory entertainment complex in Midtown St. Louis is set for a significant transformation as local real estate investor Rod Thomas plans to convert it into a data centre. This project may serve as the first test of the city’s recently introduced regulations regarding high-tech facilities. The plan includes a second data centre on the Armory's parking lot, which is projected to generate substantial tax revenue and create numerous job opportunities.

Last updated: 28 October 2023 (BST)

Key Takeaways

• Rod Thomas plans to buy the Armory for £25 million and convert it into a data centre.
• A second data centre is proposed for the Armory's parking lot, expected to generate £20 million in taxes annually.
• The project will be the first to undergo scrutiny under new city regulations for data centres.
• Concerns about energy consumption and environmental impact have been raised by local residents.
• Thomas has until December 2027 to close the deal on the Armory.

The Armory: A Brief History

The Armory, a vast former National Guard building located just south of Interstate 64 near Grand Boulevard, has a rich history. Once a venue for major events, including performances by legendary musicians and sporting events, it has fallen into disrepair and was shuttered in 2024. Over the years, various redevelopment plans have been proposed, but none have come to fruition until now.

Plans for Transformation

Rod Thomas, representing Creve Coeur-based TriStar Properties, has signed an option to purchase the Armory for £25 million. His vision involves transforming the complex into a data centre, with plans for a second data centre on the adjacent parking lot. According to city documents, this initiative is anticipated to raise £20 million annually in taxes and provide 45 full-time jobs with average salaries around £130,000.

Impact on Local Economy

The proposed data centre project is expected to significantly impact the local economy. The projected job creation and tax revenue could provide a much-needed boost to St. Louis's finances. The new facilities will also introduce a technological infrastructure that aligns with the booming demand for data storage and processing, driven by advancements in artificial intelligence and digital services.

City Regulations and Challenges

This development is poised to be the first major project evaluated under Mayor Cara Spencer's new executive order on data centres. This order will require developers to address several critical factors, such as job creation, proximity to residential areas, anticipated power and water usage, and potential noise pollution. These regulations aim to balance the benefits of high-tech development with the concerns of local residents.

Community Concerns

Despite the economic promise, the project has drawn scrutiny from community members. Data centres, while technologically essential, often occupy large areas of land and consume substantial amounts of energy. Critics argue that this could lead to increased energy costs for residents and strain local resources, including water supplies.

In St. Charles, a similar proposal to develop multiple data centres faced fierce opposition, resulting in the local council imposing a moratorium on new data centre projects. St. Louis officials have suggested a one-year moratorium as well, although this has been met with resistance from labour unions and developers.

Economic Viability and Future Prospects

For Green Street Real Estate Ventures, the current owner of the Armory, the data centre proposal could inject vital funds into a company that has struggled since the pandemic. The firm, once a dominant player in St. Louis real estate, has faced severe challenges, including rising construction costs and falling revenues. The Armory project represents a potential lifeline, allowing for a new phase of development that could restore profitability.

Technical Considerations

Thomas has assured that water consumption at the data centre will be closely monitored. He claims that Ameren Electric supports the project, which may lead to efficiencies in energy use rather than increased costs for consumers. This aspect has been a critical point in addressing community concerns about the environmental impact of the proposed facilities.

Future of the Armory Complex

Under the terms of the agreement between Thomas and Green Street, both parties acknowledge that repurposing the Armory as a data centre represents its "highest and best use." Thomas has until 31 December 2027 to complete the purchase. If successful, this project could set a precedent for future developments in the area.

Moreover, any changes to the Armory's use will need approval from the St. Louis Redevelopment Corporation, ensuring that community interests remain at the forefront of the decision-making process.

Conclusion: Navigating a New Future

The transformation of the Armory from an entertainment venue to a data centre reflects broader trends in urban development, particularly the growing demand for digital infrastructure. While the project promises economic benefits, it also raises important questions about energy consumption, environmental impact, and community engagement. As St. Louis navigates this complex landscape, the outcomes of this endeavour could shape the future of data centre developments across the region.

As cities worldwide adapt to the increasing reliance on technology, what does the future hold for similar projects in urban landscapes? Will communities embrace the shift, or will concerns over environmental impact prevail? Only time will tell. #DataCentres #UrbanDevelopment #StLouis

FAQs

What is being proposed for the Armory in St. Louis?

Rod Thomas plans to convert the Armory into a data centre, with an additional data centre planned for the parking lot, projected to create jobs and generate tax revenue.

How much revenue is expected from the new data centres?

The second data centre alone is expected to raise approximately £20 million annually in taxes.

What are the community concerns regarding data centres?

Residents are concerned about the potential for increased energy costs, environmental impact, and the consumption of large amounts of water and land.

How will the new city regulations impact the project?

The new executive order requires developers to address job creation, energy use, and environmental concerns, ensuring a balanced approach to data centre development.

What is the timeline for the purchase of the Armory?

Rod Thomas has until 31 December 2027 to finalise the purchase of the Armory from Green Street Real Estate Ventures.