Lebanon Data Center: What We Know and Don’t Know

City Administrator Troy Schulte said Lebanon wanted to bring the data center discussion to the public early, while the proposal was still under consideration. Lebanon Now interviewed Schulte and Joe Berkich about the claims circulating online. Both said the city still needs answers before it can decide whether the project makes sense.

Rumor: The data center will use 30 or 100 megawatts

What we know:

Schulte used 30 megawatts as a hypothetical example to estimate possible city revenue. He did not say that was the project’s expected power use.Berkich said he had heard two or three megawatts, but could not confirm it. The actual power demand is unknown. Schulte said the study by the city’s wholesale power supplier could take about six months.

Rumor: It will be a 14-acre facility or campus

What we know:

The Laclede County Record (Laclede County Record: “Lebanon weighing data center proposal” )reported an early estimate of 10 to 15 acres. In my interview, Schulte gave no acreage and said no site had been selected.Schulte said the developer was looking at industrial land, either city-owned or privately owned.Neither interview includes a site plan. It is unknown whether the acreage would hold one building or multiple buildings.

Rumor: It will be a hyperscale data center

What we know:

Schulte said it would be much smaller than the hyperscale facilities in places such as Kansas City and Warrenton. He compared the possible scale to facilities that host websites.Berkich called it “a very small one,” The company and exact type of data center have not been disclosed.

Rumor: It will use too much water or create harmful noise

What we know:

The Record reported that Schulte described the proposal as planned for air cooling. In my interview, Berkich said the city did not have confirmed information about the design or water use.Schulte discussed air-cooled and closed-loop systems, including systems that may use treated wastewater. He compared possible water use with water used at a Yellowjackets football game. The project’s final design and water needs remain unknown.Berkich said the city wanted to visit a comparable facility to see what it looks and sounds like and how it affects utilities.Schulte said an enclosed building with tilt-up walls could help manage sound. No site-specific noise measurements or final building design are available.

Rumor: The company will not pay taxes or its electric bill

What we know:

Missouri law, Section 144.810, lets eligible data centers apply for sales and use tax exemptions on certain purchases, including electricity, other utilities, equipment and construction materials.To qualify as a new facility, a project must invest at least $25 million and create 10 full-time jobs within 36 months of conditional approval. Those jobs must pay at least 150% of the county average wage. The company must submit a project plan and meet the state’s other requirements.The interviews do not establish whether the project has applied for or qualifies for an exemption. The exemption is limited. It does not make electricity itself free.The Record (Laclede County Record: “Lebanon weighing data center proposal”) reported that Lebanon’s large-industrial electric rate includes a service fee, per-kilowatt-hour charges and demand charges. Without the project’s power demand, its monthly bill cannot be calculated.Schulte said the developer would pay for engineering studies and any added electrical infrastructure. He estimated the city could receive about $1.8 million a year in utility franchise fees under his hypothetical 30-megawatt example. That is not a confirmed estimate for this proposal.Schulte said a large industrial customer could help ease pressure on residential utility customers. That is his view of a possible benefit, not a promise that residential bills would go down.

Rumor: The data center will get priority power during an outage

What we know:

Schulte said it would not get priority over the hospital. During restoration, it would be in line with other key industries. He said data centers can arrange private power insurance.

Rumor: The project is about to be built

What we know:

Schulte said the City Council agreed to explore the proposal, but the project could fall through for several reasons, including the cost of making it work.Berkich said the city administrator was preparing data center policies for Planning and Zoning to consider before the process moves forward.Schulte estimated the power study could take about six months and said city discussions could continue for six to eight months. Neither interview provided a construction date. The full process could take months or years.

At a glance

Location: No site selectedAcreage: The Record reported 10 to 15 acres; the interviews did not confirm a figure or site planPower demand: UnknownType: Described by Schulte as much smaller than hyperscale; exact type undisclosedWater and noise: Final design and impacts unknownTaxes and electric costs: Exemption possible if the project qualifies; monthly bill unknownNext steps: Power study and city policy reviewTimeline: Months of study and discussion ahead; no construction date set

Conclusion

We still know very little about the proposal. It remains in the discussion stage, and more details are expected as the city reviews it.

Schulte said the data center would remain before the City Council for months. “This conversation is going to be for the next six or eight months in front of the city council,” he said. He also described the city’s public process: “The way this normally works is you bring legislation forward, the council deliberates. All of these meetings are in public.”

Rumors can spread quickly when details are still unknown. Lebanon Now is not for or against data centers. We are following the story to help our community stay informed with accurate information.

This is a developing story. We will update this article as we learn more.

Sources

Laclede County Record: “Lebanon weighing data center proposal”Lebanon Now interview with Joe BerkichLebanon Now interview with Troy Schulte