Residents File Lawsuit Against Festus Over $6B Data Center Project

The lawsuit seeks to negate the city's zoning decisions and development agreement with developer CRG.

Apr. 10, 2026 at 12:26am

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A photorealistic studio still life featuring a stack of legal documents, a gavel, and a calculator, conceptually representing the abstract corporate strategy and legal battles surrounding a controversial data center project.A legal challenge to a major data center project in Festus, Missouri exposes the complex negotiations between local governments and developers.Festus Today

A group of Festus, Missouri residents have filed a lawsuit against the city over a $6 billion hyperscale data center project. The lawsuit aims to invalidate the city's rezoning decisions and development agreement with developer CRG Acquisition for the 360-acre facility. The residents, organized as 'Wake Up Jeffco LLC', argue the city made unlawful zoning changes, failed to provide proper public notice, and colluded with CRG without transparency.

Why it matters

This lawsuit represents the first legal challenge to a major data center project in the St. Louis region, where several cities have approved similar large-scale facilities in recent years. The outcome could set a precedent for how local governments navigate the approval process for these types of high-stakes developments.

The details

The lawsuit alleges the city's rezoning decisions amounted to 'spot zoning' that only benefited the developer, CRG, rather than serving the broader community. It also claims the city violated its own code and Missouri open records law by keeping discussions and communications with CRG behind closed doors. Additionally, the suit argues the city failed to provide proper public notice for key meetings that approved the rezoning and development agreement.

  • On April 10, 2026, Festus residents filed the lawsuit against the city.
  • On November 24, 2025, the Festus City Council approved the rezoning for the data center project.
  • On March 30, 2026, the Festus City Council approved the development agreement with CRG.

The players

Wake Up Jeffco LLC

A business organization formed by Festus residents to promote education and public awareness regarding proposed data center projects in the Jefferson County area.

CRG Acquisition

A subsidiary of real estate firm Clayco that plans to build the $6 billion hyperscale data center facility on over 360 acres in Festus.

Stephen Jeffery

An attorney with Jeffery Law Group who is representing the Festus residents in the lawsuit against the city.

Brian Malone

The city attorney for Festus who stated the city took all legally required steps in approving the data center project.

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What they’re saying

“This case is really the first lawsuit that's been filed in the St. Louis area, challenging the city's decision to approve one of these major data center projects.”

— Stephen Jeffery, Attorney, Jeffery Law Group

“Various emails and text messages show several offensive remarks made by city officials, calling opponents of the data center project, quote, 'the sideshow of the uneducated masses' and urging other city officials to quote, 'keep the flock herded'.”

— Stephen Jeffery, Attorney, Jeffery Law Group

What’s next

The city of Festus has stated it will file a response to the lawsuit in court in due course.

The takeaway

This lawsuit highlights the growing tensions between local governments eager to attract lucrative data center projects and residents concerned about the environmental and community impacts of such large-scale developments. The outcome could set an important precedent for how cities navigate the approval process for these types of high-stakes projects in the future.