Two bills aim to prevent high utility cost in areas with data centers

By Nolan Haberstroh, Missouri News Network
JEFFERSON CITY — Bills seeking to prevent an increase in utility costs for residents in areas impacted by data centers were introduced during a news conference Wednesday.
House Bills 3362 and 3364, sponsored by Reps. Colin Wellenkamp, R-St. Charles, and Mike Costlow, R-Dardenne Prairie, respectively, would require permits for certain levels of utility use and subject “large-load customers” to different payment rules.
One of the included provisions would require large water consumers to get a permit from the state Department of Natural Resources.
Data centers or other consumers using more than 2 million gallons of freshwater, or 80% of the available water capacity of a given locality, would be required to apply for the permit. Consumers above the large load threshold for use would also be required to pay an increased rate, with the intent to save residents near the centers from potential increased costs. If permit holders far exceed the minimum use for a permit, they will be required to cover the costs to build out additional utility infrastructure, Wellenkamp said.
“If facilities are exceeding (permitted levels) by a good amount, where currently the capacity of the system would be in question, either in normal operation or in emergency operation, then (the consumer) will be required to build out freshwater capacity for the locality that they are in,” Wellenkamp said.
Under the bills, if a state of emergency related to drought is declared by the governor, the Department of Natural Resources would reevaluate existing permits.
Wellenkamp said the two bills propose regulations for water utilities similar to those already implemented for energy utilities in Senate Bill 4.
SB 4, introduced last year by Sen. Mike Cierpiot, R-Lee’s Summit, enacted a wide range of utility regulations. One provision requires large energy consumers to pay an increased rate to cover the cost of any strain on local infrastructure and to ensure that costs are not pushed onto smaller consumers. Wellenkamp’s bill seeks to extend these provisions to water utility use.
The bills would not prevent the use of resources by data centers in the state, or even curb the amount used. Instead, they would attempt to prevent residents from incurring increased costs related to resource use. Increased utility costs have been a concern in areas impacted by data centers.
St. Charles County, which both Wellenkamp and Costlow represent, has become a hotbed for prospective data center development in the state. According to the city’s website, St. Charles placed a one-year moratorium on data centers in August of 2025.
Wellenkamp also acknowledged existing water access problems in his home county.
“We have some water insecurity issues in St. Charles; I’m not going to sugarcoat that. We are having to get water from compromised well systems,” Wellenkamp said. “(The water) is cleaned, and then safely given to our folks, but it’s low capacity. We also have to get water from St. Louis County.”
Costlow insisted the provisions of the bills are enough to safeguard residents.
“Whether it’s an increase in capacity, building power plants, or water facilities, we have to make sure that cost is not passed on in any situation to the consumer,” Costlow said. “We want to protect our residents first before we start to look to reap the benefits of this kind of investment into our state.”
Rep. Scott Miller, R-St. Charles, was also present. He said the intention was not for the bills to be anti-AI. Miller said the legislators welcome business from the centers in the state.
“The future is coming, and we’ve got to rise up to meet it. But we need to meet it on our terms, and we need to meet it protecting our people. And we shouldn’t hide from (it) as far as I feel,” Miller said.