ST. LOUIS – St. Louis city officials announced plans Thursday to regulate data center projects and will not move forward with a moratorium proposed last week.

St. Louis Mayor Cara Spencer will sign an executive order Friday that directs city departments to develop a comprehensive framework for incorporating data centers into the city’s zoning and water codes over the next five months.

The order aims to address community concerns about environmental and utility impacts of data centers while encouraging business development, according to Spencer.

“We understand that data centers play a role in the technology infrastructure that forward-thinking moving cities need to have as part of an ecosystem hat can attract other types of technology companies and innovation to their communities,” said Spencer during a Thursday news conference. “We don’t want to be closed for business, but we want to be thoughtful in the regulation that we’re putting forward. That’s why we’re moving forward in this manner.”

Last week, the St. Louis Planning and Urban Design Agency issued a memo proposing a moratorium, or a temporary ban, on new data center development within the city.

In recent years, data centers have been seen as investments to fuel economic growth and technology, but they have also raised concerns over energy and water consumption. Just last month, nearby St. Charles issued a one-year moratorium on data center projects to address such concerns.

Instead of a moratorium, St. Louis will require developers on all data center projects to participate in a series of public hearings and answered detailed questions about the impacts of proposed projects on city neighborhoods and residents.

Aspiring data center developers can continue to apply for conditional use permits, but city officials will require multiple public hearings and comments, along with Board of Alderman approval, before projects move forward.

Also on Friday, St. Louis Alderwoman Anne Schweitzer will introduce a resolution that aligns with the mayor’s executive order, establishing a formal process for reviewing data center applications and ensuring public input while the city finalizes permit regulations.

“This consideration and process with a conditional use hearing, the point is to get questions answered,” said Schweitzer. “‘What is the energy use? What is the water use? What is the effect on nearby property owners? How far will these be from residential neighborhoods?’ The size, the scope, the tax revenue. So many things that with this process, now we’ll be able to get answers to, which helps us make better decision as a city.”

Board of Aldermen President Megan Green, meanwhile, emphasized the importance of community involvement. She noted that the planning and zoning commissions will create policy recommendations aligned with the mayor’s executive order.

Green added that residents will have multiple opportunities to provide input on data center developments: At conditional use hearings, at an Oct. 1 hearing on Schweitzer’s resolution, and if any proposals reach the Board of Aldermen as legislation.

On the topic of data centers, a spokesperson from Mayor Spencer’s Office also shared this statement on behalf of the mayor earlier this week:

“Following reporting on a proposed pause on new permits for data centers in St. Louis, it is important that we as a city are clear that we are not seeking to ban data centers. While I have concerns about data centers’ effects on the environment, utility prices, vibrancy and urban living, I also recognize their importance to key industries in St. Louis, including biotech, the geospatial field, agtech and health care, and my office is working closely with the Board of Aldermen and key stakeholders to propose responsible regulations to allow for their appropriate development.”