ST. LOUIS, MO – September 23, 2026 (STL.Directory) A Midtown St. Louis property slated to become part of a multibillion-dollar data center development is facing a city land-tax sale, adding a new complication to one of the largest proposed private development projects in St. Louis.
The former Famous-Barr warehouse at 3728 Market St., near the historic Armory building, has been identified as the site of the proposed Armory Innovation Data Center. The broader development is valued at about $3.09 billion and calls for a large data center, redevelopment of the Armory, and significant private investment in Midtown.
But the warehouse property is now scheduled for a City of St. Louis land-tax sale amid reported delinquent real estate taxes.
The St. Louis Business Journal reported Tuesday that the property faces a tax sale over more than $2.4 million in outstanding taxes.
The development does not automatically disappear because a property enters the tax-sale process. Delinquent taxes can be resolved before a sale, and the city’s tax-sale process includes additional procedures before ownership ultimately changes.
Nevertheless, the situation creates a significant issue for a project that has recently cleared several important regulatory hurdles.
Data Center Planned at 3728 Market Street
The data center is planned for the former Famous-Barr warehouse at 3728 Market St., adjacent to the Armory in Midtown.
In April, the City of St. Louis Board of Public Service unanimously approved a conditional-use permit allowing construction of a data center at the property.
The city attached extensive conditions involving noise, water, energy, infrastructure, pedestrian access and community benefits.
City officials have described the project as an important potential source of new jobs and tax revenue while acknowledging concerns surrounding the substantial infrastructure demands created by large data centers.
The proposed facility is expected to operate at approximately 120 megawatts.
According to the developer’s project information, the data center is targeted to become fully operational by late 2028, although other recent reporting tied to the final community-benefits agreement describes construction beginning in 2027, with completion extending into 2029.
That timeline could change as permitting, construction, and other issues are resolved.
Project Carries Estimated $3.09 Billion Investment
The scale of the proposed Midtown investment makes the tax situation particularly noteworthy.
The development has been valued at approximately $3.09 billion.
Recent reporting based on the development plan puts the data center building itself at roughly $1 billion, with approximately another $2 billion expected for data center equipment.
The neighboring Armory is planned for redevelopment as office and technology space.
The project is expected to create more than 1,000 union construction jobs, according to city and developer estimates.
The City of St. Louis said in April that the completed development was expected to support approximately 200 full-time jobs, including positions associated with both the data center and redeveloped Armory.
Those figures are projections tied to the development plan rather than jobs that currently exist.
City Projects Hundreds of Millions in Tax Revenue
One of the most consequential aspects of the proposed development is its potential tax contribution.
The City of St. Louis estimated in April that the project could generate approximately $432.3 million in tax revenue over its first 10 years.
The city’s estimate included revenue benefiting St. Louis city government, St. Louis Public Schools and other local public institutions.
The city projected approximately $27.4 million in first-year revenue for the City of St. Louis and another $33.4 million for St. Louis Public Schools.
More recent projections associated with the community-benefits approval have put the overall 10-year figure somewhat higher, illustrating that estimates have changed as the development plan has progressed.
These figures should not be interpreted as guaranteed future revenue. They are projections dependent upon the project being constructed and operating substantially as anticipated.
Community Benefits Agreement Approved
The tax-sale issue comes shortly after another major milestone for the development.
On Sept. 15, the city’s Land Clearance for Redevelopment Authority approved a community-benefits agreement connected with the project.
The agreement includes an estimated $15.75 million community contribution based on $30 per square foot of approved data center development.
Potential uses include improvements associated with the Brickline Greenway, digital access initiatives, energy and weatherization programs, workforce programs, and other community investments.
Another important component is the project’s approach to local development incentives.
The agreement restricts the developer from seeking local tax abatements and certain other local incentives that would significantly reduce the tax revenue generated by the development.
That provision is particularly notable given the current delinquent-tax issue involving the property.
However, delinquent property taxes should not be confused with receiving a tax abatement. They are separate matters.
St. Louis Sets Oct. 6 Land Tax Sale
The City of St. Louis Collector of Revenue lists Land Tax Sale 240 for Oct. 6, 2026.
The city’s first publication date for the sale was Sept. 22, followed by another scheduled publication Sept. 29.
Under the city’s delinquent-property process, a parcel with unpaid real estate taxes can become subject to a tax lawsuit and eventually a Sheriff’s Office tax sale.
The city explains that a tax sale generally occurs approximately one year after a delinquent tax suit is filed.
That process does not mean a property immediately changes hands once it appears on a tax-sale list.
The delinquency can potentially be addressed before the scheduled auction, depending on the circumstances.
That possibility is especially relevant here.
Published reporting indicates the 3728 Market property previously faced another tax-sale proceeding before the owner paid more than $588,000 in July, removing it from that sale.
The latest reported delinquency exceeds $2.4 million.
Whether that amount will be paid or otherwise resolved before Oct. 6 is now one of the key issues surrounding the property.
Tax Sale Does Not Mean Data Center Is Canceled
This distinction matters for St. Louis residents and businesses following the project.
A scheduled tax sale does not establish that the Armory Innovation Data Center has been canceled.
Nor does it establish that another owner has acquired the warehouse.
The project still has regulatory approvals, and the city approved its community-benefits agreement only days ago.
However, unresolved property taxes could create additional complications for a development already navigating an unusually complex regulatory and legal environment.
The developer has also challenged some conditions imposed on the data center.
TerraWatt recently filed litigation concerning renewable-energy requirements imposed as part of the project’s approval, specifically challenging conditions involving on-site renewable generation.
That dispute is separate from the delinquent-tax matter.
St. Louis Recently Adopted Data Center Regulations
The tax issue also arrives as St. Louis establishes a broader regulatory structure governing data centers.
Mayor Cara Spencer signed Board Bill 49 into law Sept. 17, creating new city zoning and development rules specifically addressing data centers.
The legislation covers issues including land use, environmental impacts, noise and community protections.
The mayor’s office described the legislation as the result of a yearlong process involving city departments, aldermanic officials, community representatives, labor and environmental interests.
The Armory project has become an important early test of how St. Louis manages major data center investment while attempting to protect surrounding neighborhoods and public infrastructure.
Why the Midtown Project Matters to St. Louis
Data centers have become increasingly important pieces of the infrastructure supporting artificial intelligence, cloud computing, financial services and other digital industries.
St. Louis officials have argued that the region has advantages that could attract additional data center investment.
The city already has existing data centers, and the Armory development would dramatically increase the scale of the sector locally if completed.
For Midtown, the implications extend beyond the data center itself.
The project would represent billions of dollars in private capital concentrated along the Market Street corridor and near Cortex, Saint Louis University, the Grand MetroLink station, and the Brickline Greenway.
It could also return a massive former department-store warehouse to productive use.
At the same time, opponents and some nearby residents have raised concerns about energy consumption, noise, environmental impacts and infrastructure demands.
Those competing considerations have made the project one of the city’s most closely watched developments.
Oct. 6 Becomes Next Date to Watch
For now, the project’s tax situation creates another important deadline.
Land Tax Sale 240 is scheduled for Oct. 6.
The central question is whether the outstanding taxes associated with 3728 Market St. will be resolved before that date.
If they are, the property could potentially be removed from the sale process, as occurred previously.
If they are not, the process could move forward and create additional uncertainty surrounding a property central to a proposed $3 billion-plus Midtown investment.
The tax issue therefore does not mean the Armory Innovation Data Center is dead.
But for a development projected to generate hundreds of millions of dollars in future local tax revenue, the fact that its proposed site is currently facing a delinquent-tax sale makes what happens before Oct. 6 particularly important for St. Louis’ business and development community.
STL.Directory will continue following the project’s development and the status of the 3728 Market St. property as the Oct. 6 land-tax sale approaches.
