MONTGOMERY CITY — Montgomery County commissioners voted unanimously Thursday to approve a tax abatement framework for a proposed Amazon Web Services data center in Montgomery City.
The vote approved the framework and cost-benefit analysis only and does not authorize construction.
"This is going to be a great project and we should be welcoming Amazon for our community," Montgomery County Commissioner Ryan Poston said.
County Commission officials said the agreement poses no financial risk to the county and that Amazon would pay 100% of its real property taxes with no abatements. Officials also stated Amazon would pay more in taxes than it would receive in any benefits under the agreement.
According to the county’s cost-benefit analysis, Amazon’s real property tax contributions are projected to range from $326 million to as much as $1.5 billion. Amazon estimates the total projected tax revenue generated by the project could range from $400 million to $1.8 billion based on the county’s analysis.
"We have worked diligently to ensure this project aligns with community priorities and supports responsible, sustainable growth, including paying the costs to power our operations and necessary grid enhancements to ensure existing utility customers are not impacted," an Amazon spokesperson said in an emailed statement.
A tax abatement is a temporary reduction or exemption on certain taxes intended to encourage economic development. County Commission officials emphasized the framework does not reduce Amazon’s real property tax payments and ensures full tax contributions throughout the life of the project.
Amazon representatives said the project would be the largest private investment in Montgomery County history.
“Amazon’s interest in Montgomery County reflects the region’s talented workforce, reliable infrastructure, and clear commitment to economic development," the Amazon spokesperson said in an emailed statement.
Amazon's plans include a minimum of four data center buildings with a maximum of 17 buildings. The minimum capital investment is projected at $8.5 billion, and construction could begin as soon as 2026 if the project receives all necessary approvals.
"I'm just telling you the facts from a school superintendent and an educator background," Montgomery County R-2 Superintendent Brian White said. "This is amazing and I have to be an advocate for anything that produces this much future for kiddos cuz that's why I got in the business."
Amazon projected the data center complex would create at least 150 jobs with an average annual salary potential of $85,000. The construction phase of the project would also create jobs.
"This project would create hundreds of full-time jobs, thousands of jobs during the construction phase, and generate tens of millions of dollars in new tax revenue providing sustainable funding for essential services, local schools and infrastructure," the Amazon spokesperson said in the statement.
An Amazon data center is a facility that houses servers and storage systems used to support cloud computing services. Amazon Web Services data centers power many everyday technologies, including streaming platforms, online banking, learning management systems and smart devices and medical portals.
The public hearing included Amazon representatives, county tax entities, school superintendents, emergency service officials, law enforcement representatives and Montgomery County commissioners.
"Personally I do not think that this trade off of valuable farm ground for industrial sites is worth it in the slightest," fifth-generation farmer Avery Ridgley said.
The proposed Amazon data center is planned near New Florence in Montgomery County. Water for the facility would be drawn from on-site wells, according to project materials, and would not affect public drinking water supplies. The project would also be required to comply with local sound ordinances.
Ameren Missouri is expected to provide power for the facility. The Missouri Public Service Commission recently approved a new rate structure for Ameren Missouri for large-load users, including data centers that are designed to ensure those customers pay their share while protecting existing ratepayers.
The Montgomery County Commission previously held public meetings regarding two proposed data center projects in the county, which included one for Amazon Web Services.
Next steps in the process include land purchases and submission of building permit applications for review and approval prior to any construction activity. Property closings are expected in the first quarter of 2026.
County officials emphasized the hearing and vote addressed only the tax abatement framework and cost-benefit analysis.
Additional approvals are required before any development moves forward.
