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Data Centers 101: Frequently Asked Questions

Randolph County, Missouri

Data centers are increasingly exploring sites across Missouri. This document provides fact-based answers to common questions County Commissioners and residents may have as Randolph County evaluates potential projects.


What is a data center?

A data center is a secure facility that houses computer servers and networking equipment used to store, process, and transmit digital information. These facilities support cloud services, online banking, healthcare systems, logistics, and communications infrastructure.


How much water do data centers use?

Water usage depends on the cooling system. Air-cooled or closed-loop systems use little to no water. Evaporative systems use water but are often designed to minimize consumption or recycle water onsite. Local water utilities retain full authority over capacity, limits, and rates.


Will data centers raise electric rates for residents?

No. Missouri utilities classify data centers as large-load customers. State regulation requires these customers to pay for the infrastructure needed to serve them, preventing cost shifts to existing ratepayers. Long-term power agreements and upfront infrastructure investments are common.


How much electricity do data centers use?

Data centers are energy-intensive but have predictable, steady loads. Utilities evaluate capacity and reliability early in the process, and many operators pursue renewable energy options.


How many jobs do data centers create?

Construction can employ hundreds of skilled trades over 18–36 months. Operations typically require 30–100 high-skill, well-paid, long-term jobs.


What is the local tax impact?

Data centers involve large capital investments and may request negotiated, time-limited tax abatements or PILOT agreements. Even with incentives, communities may benefit from sales tax during construction, infrastructure improvements, and long-term assessed value.


Do data centers use diesel generators?

Yes. Backup generators are required for reliability and are rarely used except for testing or outages. They must comply with state and federal environmental regulations.


Are there environmental or safety concerns?

Data centers are low-impact industrial uses with minimal traffic and no manufacturing emissions. Environmental reviews may address stormwater, wetlands, threatened species, noise, and setbacks.


What role does the County Commission play?

The County Commission retains authority over land use, infrastructure agreements, tax abatements or PILOTs, development agreements, and public transparency.


Why are data centers looking at Missouri and Randolph County?

Missouri offers a central location, available land, reliable utilities, skilled workforce, and a pro-business regulatory environment.


Bottom line

Data centers are major infrastructure investments that require careful evaluation. Each project is unique, and local control remains essential.



Reference Sources


Data Centers – Utilities, Water Use, and Public Policy (Missouri)


Missouri State Policy & Incentives

1. Missouri Department of Economic Development – Data Center Sales Tax Exemption Program

2. Missouri Revised Statutes §144.810 – Data Storage Center Sales & Use Tax Exemption

3. Missouri Department of Revenue – Sales & Use Tax Exemptions


Electric Utilities & Ratepayer Protections

4. Missouri Public Service Commission – PSC Approval of Ameren Missouri Large Load Power Rate Plan

5. Missouri Independent – Missouri passes new rules and costs for data centers and large power users

6. Ameren Missouri – Economic Development & Large Load Customers


Water Usage & Environmental Considerations

7. Environmental and Energy Study Institute (EESI) – Data Centers and Water Consumption

8. Dgtl Infra – Data Center Water Usage: A Comprehensive Guide

9. U.S. Environmental Protection Agency – Industrial Water Use & Efficiency


General Data Center Operations & Metrics

10. Uptime Institute – Data Center Energy and Water Efficiency Metrics

11. Lawrence Berkeley National Laboratory – United States Data Center Energy Usage Report


Economic Development & Industry Context

12. Missouri Partnership – Missouri’s Competitiveness for Data Centers

13. National Conference of State Legislatures (NCSL) – Policy Snapshot: Data Center Incentives


Sources are provided for general informational purposes. Data center design, utility demand, water usage, and fiscal impact vary by project and are subject to local review, negotiation, and regulatory approval.

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