The state’s data center boom is reshaping energy, water use and taxes. Here’s what residents should know about the costs, jobs and incentives involved.
By Brennan Park | Illinois Policy Institute
Data centers are expanding across Illinois amid the tech industry’s rising demand for cloud computing. Supporters say the facilities bring investment and jobs, while critics worry about rising energy costs, environmental effects and tax incentives.
Illinois lawmakers are considering passing more stringent regulations on the growth and operation of data centers, with bills recently introduced in the House and Senate. These bills would require “hyperscale” data centers to expand renewable energy and “strengthen equity, transparency, and labor standards in clean energy initiatives,” among other new rules.
Here’s what every Illinoisan should know about the data center boom and tradeoffs the state makes to be a part of it.
1: Illinois is already a major data center hub, with the growth accelerating
Illinois boasts the fourth-highest number of data centers in the country, at 244 sites. That’s because the state provides much of what data center developers need: energy, environment and space.
These facilities need large amounts of reliable, clean electricity. They also require a cool, stable climate and ready access to water to prevent overheating. Illinois’ weather, rivers and proximity to Lake Michigan provide those conditions.
Flat land and industrial sites also make it easier and cheaper to build large-scale facilities. Illinois has a lot of both.
Most of the current development is concentrated in Chicago and its suburbs, with new projects from companies such as STACK Infrastructure, Prime Data Centers and Prologis.
Aurora is home to Prologis Project Steel, with 24 completed data center buildings, and Project Cardinal, with 14. Southern and central Illinois are also proving attractive. CyrusOne is slated to host a 600-megawatt data center campus in Springfield, one of the largest proposed in the state.
Article continues here.
Related: “110 Acre AI data center campus pitched to Village Board”
Leave a Reply