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SPAC King Chamath Palihapitiya Says 'Not A Good Sign' As $6 Billion Missouri AI Data Center Sparks Backla

Residents ousted all four incumbents after the council backed a $6 billion data center project, and critics cited secrecy and inadequate public notice.

  • Voters in Festus, Missouri, ousted four incumbent city council members last week following the council's March 30 approval of a $6 billion data center project spanning roughly 360 acres.
  • Residents campaigned against the project citing lack of transparency and concerns about environmental impacts, with public input ignored during the rushed approval process.
  • A lawsuit filed April 8 in St. Louis County Circuit Court alleges the city and CRG Acquisition, LLC, held secret meetings violating Missouri's Sunshine Law and due process requirements.
  • Bob Clark, founder of developer CRG Clayco, stated Monday the project will proceed despite legal challenges, asserting the company's development rights are vested.
  • This local backlash mirrors a national trend; voters in Port Washington, Wisconsin, also rejected data center expansion, while Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez introduced federal moratorium legislation.
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  • 45% of the sources lean Left
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Tom's Hardware broke the news on Monday, April 13, 2026.
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