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MO — State Policy Updated January 2026

Missouri

Data Center Sales Tax Exemption No speculative development Repayment penalties for non-compliance

Overview

Missouri offers a statewide sales and use tax exemption program for qualifying data centers, codified in Section 144.810. New facilities can receive up to 15 years of exemptions on construction materials, equipment, and utilities if they meet investment and job thresholds; existing facilities expanding operations can qualify for up to 10 years of exemptions on incremental usage. However, the program explicitly excludes speculative development and requires known tenants, and at least one municipality (St. Charles) has imposed a local moratorium following public concern over water and development impacts.

Incentives

Data Center Sales Tax Exemption

Missouri’s Department of Economic Development (DED) and Department of Revenue (DOR) administer a sales and use tax exemption for data storage centers under Section 144.810, RSMo. Eligible operators must be primarily engaged in data processing, hosting, and related services (NAICS 518210) or internet publishing, broadcasting, and web search portals (NAICS 519130).[1][2]

New facility thresholds:

  • At least $25 million in investment within 36 months[1]
  • At least 10 new full-time jobs within 36 months, with average wages at or above 150% of county average wage[1]
  • Facility must have been acquired or leased on or after August 28, 2015[1]

Expanding facility thresholds:

  • At least $5 million in net new investment within 12 months[1]
  • At least 5 new full-time jobs within 24 months, with average wages at or above 150% of county average wage[1]

Exemption scope:

  • New facilities: 100% exemption from state and local sales and use taxes for up to 15 years on utilities (including telecom and internet), machinery/equipment/computers, and construction materials[1]
  • Expanding facilities: exemptions for up to 10 years on the same categories, with utility exemptions limited to incremental usage above the pre-expansion baseline (measured in kWh, gallons, cubic feet, or other units)[1]
  • Fiscal cap: total exemptions cannot exceed the projected net fiscal benefit to the state over a ten-year period, calculated by DED using the REMI model or comparable data[1]

Requirements and Conditions

No Speculative Development

DED guidance states the program is not intended for speculative development. Tenants must be known at the time of application, and both the constructing entity and the operating entity must apply jointly as “project taxpayers.” The relationship should be documented in at least a memorandum of understanding.[3]

Application and Documentation

Applicants must submit a Notice of Intent and a project plan for DED and DOR review. Required documents include an E-Verify MOU, tax clearance certificate, and a project taxpayer agreement when multiple entities are involved.[2][3]

Exemption Certificate Mechanics

Exemption certificates are tied to specific project taxpayers. If a taxpayer exits a project, its certificate becomes invalid and a successor must receive a new certificate.[1]

Repayment and Compliance

Project taxpayers must sign an agreement that includes repayment penalties if the project fails to comply with statutory requirements. Additionally, a recipient of the Section 144.810 exemption is not eligible for business recruitment tax credits defined in Section 135.800.[1]

Local Zoning

St. Charles Moratorium

On August 22, 2025, the St. Charles City Council unanimously passed a one-year moratorium on acceptance of applications for establishing or expanding data centers. The moratorium followed public outcry over a proposed project and concerns about water impacts.[4][5]

What to Watch

  • 2026 legislative session: Monitor any proposed changes to Section 144.810 or new DED program guidance
  • St. Charles moratorium status: The one-year ban is scheduled to expire in August 2026; watch for extension, modification, or permanent zoning changes
  • Additional local moratoria: St. Charles may signal a trend of municipalities asserting zoning control over data center development

Sources

[1] Missouri Revisor of Statutes, “Section 144.810: Data storage centers, exemption from sales and use tax — definitions — procedure — certificates of exemption — rulemaking authority,” no date, https://revisor.mo.gov/main/OneSection.aspx?section=144.810&bid=36023 (accessed 2026-01-08).

[2] Missouri Department of Economic Development, “Data Center Sales Tax Exemption Program Summary (Revised August 2023),” August 2023, https://ded.mo.gov/sites/g/files/zuston466/files/media/pdf/2025/02/Data_Program_ProgramSummary_2023.pdf (accessed 2026-01-08).

[3] Missouri Department of Economic Development, “Data Center Sales Tax Exemption Program Guidelines,” 2023, https://ded.mo.gov/sites/g/files/zuston466/files/media/pdf/2025/02/Data_Center_Program_Guidelines_2023_0.pdf (accessed 2026-01-08).

[4] City of Saint Charles, Missouri, “Agenda: Special Session of the City Council (August 22, 2025),” posted 2025-08-21, https://www.stcharlescitymo.gov/AgendaCenter/ViewFile/Agenda/_08222025-1739 (accessed 2026-01-08).

[5] Kate Grumke, “Outrage over secretive Missouri data center pushes city to ban new applications for a year,” KCUR, August 23, 2025, https://www.kcur.org/housing-development-section/2025-08-23/st-charles-data-center-year-ban (accessed 2026-01-08).