ST. LOUIS — A ºüÀêÊÓƵ County technology firm announced Tuesday it has purchased a historic building in downtown ºüÀêÊÓƵ that it intends to turn into a new data center.
Officials with cloud computing firm TierPoint said in a news release they plan to spend up to $150 million on 2300 Locust Street, built in 1916 as an automobile warehouse and showroom. Over the next year, the company plans to build out 22,600 square feet of production space in the 130,000-square-foot building, supporting up to 80 construction jobs and nine permanent positions.
“This major planned investment is a direct response to the exceedingly strong demand we’re seeing for data center services,†TierPoint Chairman and CEO Jerry Kent said in the release. “It also demonstrates our commitment to the region and faith in downtown ºüÀêÊÓƵ.â€
The announcement was cause for celebration for officials who have been working to reinvigorate center city commercial space after the pandemic decimated the office market, leaving nearly a quarter of downtown space vacant.
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“TierPoint’s decision to invest so heavily in Downtown ºüÀêÊÓƵ is a strong vote of confidence in our plans for the future,†Mayor Tishaura O. Jones said in a news release. “We continue to build a Downtown that serves as the cultural hub of the ºüÀêÊÓƵ region, and I’m grateful to TierPoint for their investment in the bright future ahead.â€
The Locust Street building has been a concern in recent years as marketing firm Ansira, which once occupied the entire structure with more than 300 people, has downsized space amid a shift to remote work. And while the data center won’t fill the building with people again, boosters cheered the announcement Tuesday as a win.
“This major investment by TierPoint is a great example of how we need to rethink space to meet our future needs,†added Kurt Weigle, who leads downtown initiatives for Greater ºüÀêÊÓƵ Inc., the regional business development organization.
Greater ºüÀêÊÓƵ Inc. also cast the investment as the latest in a series of positive developments for downtown. The Locust building is within a few blocks of both the new professional soccer stadium and the historic Butler Brothers warehouse, which has been newly renovated into apartments.
But challenges remain. The Railway Exchange building, the former AT&T tower, the Chemical Building and the former Millennium Hotel — four buildings Greater ºüÀêÊÓƵ Inc. and city officials have deemed essential to downtown’s future — are still vacant. And an uptick in shooting incidents downtown this year, highlighted by a Fourth of July when seven people were shot and injured, has refueled narratives about lawlessness.
Denis Beganovic, a downtown resident who monitors and promotes downtown development, said Tuesday’s announcement felt more like a tie than a win.
It’s better than a vacant building, he said, but not the same as bringing back all those marketers. Still, he said, “better than a loss.â€
If the region’s leaders really want to give downtown something to celebrate, said Beganovic, a military planner by trade, they need get the region’s largest companies to move hundreds of jobs downtown. If the 10 largest companies sent 500 jobs each, they could fill AT&T Tower.
“That would be your World Series, Super Bowl, Olympics gold medal,†he said.
Neal Richardson, the city’s economic development chief, said no new incentives have been requested for the project.
TierPoint will inherit a 20-year-old tax increment financing deal set to expire in 2028; the value of that deal could not immediately be determined.