Illinois Data Center DevelopmentIllinois Data Center DevelopmentCoverage from Block Club Chicago, Village of Coal City, and others
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Illinois’s approach to data center development spans state incentives and proposed regulation as well as local zoning, hearings, and project approvals.
The proposed POWER Act, or House Bill 5513, illustrates the issues at stake: renewable or developer-provided electricity, water-use reporting, environmental review, transparency, and community benefits agreements. State and local discussions also weigh potential economic and tax benefits against pressure on power and water resources and effects on host communities. Together, these questions shape how Illinois communities and governments evaluate data center expansion.
Its research-based estimates of potential jobs, tax revenue, and electricity use clarify the economic benefits and public costs at stake.
Illinois Economic Policy Institute
Key Issues
01
Chicago is tightening data-center oversight
Chicago has advanced energy-use transparency and enhanced review while developing broader environmental safeguards. A construction moratorium and expanded public zoning review remain proposals, leaving the city’s overall framework unsettled.
Drawn from 4 articles
02
Local governments are filling a statewide rules gap
With the POWER Act unresolved and statewide guidance limited, municipalities and counties are developing their own moratoria, reporting requirements, and permitting controls. Oversight is consequently local and variable across Illinois, while state-level incentive and regulatory questions remain unsettled.
Drawn from 5 articles
03
Power demand and grid access constrain expansion
Projected electricity-demand growth is raising concerns about grid capacity, infrastructure costs, and who pays. Canceled ComEd agreements, including one tied to the proposed Monarch campus, show that planned investment does not guarantee near-term power access.
Drawn from 4 articles
04
Economic benefits are weighed against public costs
Data-center investment is associated with substantial potential employment and tax revenue, while policymakers and communities weigh those gains against electricity, infrastructure, and local impacts. Proposals would make incentives or approvals contingent on stronger benchmarks and responsibility for new power needs.
Drawn from 4 articles
05
Community opposition is shaping project approvals
Local siting disputes remain consequential: proposed developments have faced opposition, zoning setbacks, withdrawals, or legal challenges. Public input and concerns about community impacts recur in project-level decisions across Illinois.
Drawn from 5 articles
Key Numbers
nearly 10% percent
increase in overall electric system costs
mid-level scenario · 2035
“Its mid-level scenario adds 6.5 gigawatts of demand to Illinois’ grid by 2035 and increases overall electric system costs by nearly 10%.”
Capitol News Illinois and 1 other article
1,000 square feet
minimum facility size covered by the proposed moratorium
data centers larger than this size
“The moratorium introduced Wednesday would apply to data centers larger than 1,000 square feet, with more than 20% of their floor space dedicated to servers.”
WTTW News
20%
share of floor space dedicated to servers
more than this share
“The moratorium introduced Wednesday would apply to data centers larger than 1,000 square feet, with more than 20% of their floor space dedicated to servers.”
WTTW News
7% percent
data centers' share of Illinois electricity demand
statewide
“Data centers account for 7% of the state’s electricity demand.”
Illinois Economic Policy Institute
six-month months
duration of Rockford’s data-center development moratorium
Aug. 3
“On Aug. 3, the City Council approved a six-month moratorium on data center development to allow a study of best practices. City staff said the moratorium does not apply to land under consideration by Monarch because the property is covered by a pre-existing annexation agreement.”
Rock River Current
Looking Back
153 Day Timeline
Articles published over time. Hover any bar for the period and its article count.
May 6
May 30
Jun 26
Jul 20
Aug 13
Sep 9
Oct 3
The Story So Far
No material change
There is no new-member evidence of a material change to the Illinois data center incentives and regulation debate.
Previously
Illinois Governor JB Pritzker paused new data center tax incentives after lawmakers failed to pass the POWER Act, and state officials and stakeholders are negotiating rules for energy supply, water reporting and host-community benefits. The proposals aim to address concerns about resource demand and local impacts, while industry, labor and political leaders disagree over the rules and the future of incentives. The debate also includes opposition to possible projects in some Illinois communities.
History
10/06/2026
A new economic study quantifies the potential investment and tax benefits of Illinois data centers alongside substantial projected electricity demand and system costs. Municipal rules are also moving forward, with Aurora adopting standards and Chicago approving expanded energy benchmarking.
Chicago officials, utilities and developers are managing rapid 2025 data-center expansion amid projected power, water, infrastructure and neighborhood impacts across Chicago and surrounding Cook County.
Chicago City Council staff recommended in 2026 that Chicago adopt dedicated data center permits and zoning reviews to address environmental, water, energy, and neighborhood impacts.
Coal City, Illinois published Aligned Data Centers PUD documents online, including environmental, traffic, and noise studies, ahead of planned village review.
Chicago Mayor Brandon Johnson ordered a city task force in Chicago to develop stricter data center regulations and urged a temporary moratorium on new and expanded facilities.
Chicago Mayor Brandon Johnson ordered a pause on new data center construction Tuesday as city officials develop stronger environmental and permitting rules in Chicago.
Chicago Mayor Brandon Johnson signed a 2026 executive order creating data center safeguards and proposed a moratorium on new facilities and major expansions in Chicago, Illinois.
Chicago Mayor Brandon Johnson signed an executive order Tuesday creating a data center task force and urged a temporary moratorium as Chicago develops permanent regulations.
Chicago alderpeople voted last Wednesday to remove data centers' exemption from the Energy Benchmarking Ordinance, increasing energy and water-use disclosure requirements in Chicago.
Chicago Mayor Brandon Johnson and several alderpeople introduced a proposal Wednesday at Chicago City Council to pause new data center construction for 12 months while the city develops operating rules.
Chicago's Landmarks Permit Review Committee approved initial plans on Aug. 6 for Igor Gabal to convert 300 W. Adams Street into a data center with ComEd power infrastructure and rooftop generators.
Bloomington, Illinois officials scheduled an Aug. 26 public hearing to develop hyperscale data center rules after a six-month moratorium, amid POWER Act uncertainty at the state level.
Missouri, Iowa, and Illinois policymakers address data center siting and incentives, as Illinois halts tax incentives and the Illinois POWER Act fails to advance.
Bloomington, Illinois scheduled an Aug. 26 planning commission meeting on hyperscale data centers amid a six-month moratorium and upcoming draft regulations hearings.
Champaign County officials develop draft data center rules through 2027, adding water, noise, and renewable power requirements after Illinois POWER Act failure.
Illinois lawmakers began summer negotiations on POWER Act-style data center rules after Gov. JB Pritzker paused tax benefits and House Bill 5513 advanced in committee.
Illinois lawmakers said the POWER Act for data center water, community benefits, and renewable-energy rules will not pass this spring, and tax-credit pause talks continue into summer.
Environmental advocates in Illinois seek passage of the POWER Act before session end, proposing mandatory data-center water and energy disclosure, community benefits agreements, and public environmental assessments.
Aurora, Illinois adopted new data center moratorium follow-on rules in 2024-2025, joining other Illinois counties citing noise, water, and utility-cost concerns.
6/29/2026 • Permitting & Regulation • General
Greenberg Traurig / Shawn K. Ronda; Joshua B. Forman; Kostas Poulakidas; Nicholas (Nick) P. Hyde68
Chicago Mayor Brandon Johnson signed Executive Order No. 2026-5 on August 11, 2026, directing city departments to strengthen data center oversight and urging the City Council to consider a temporary moratorium.
Chicago Mayor Brandon Johnson signed an executive order Tuesday creating a data-center task force and advancing a temporary moratorium proposal in Chicago.
Illinois lawmakers and local officials debate new data center obligations as the Illinois POWER Act and Aurora ordinances respond to AI-driven demand and noise and water concerns.
5/11/2026 • Community & Local Opposition • General
Stickney trustees voted unanimously Thursday to block data center approvals at the former Hawthorne Race Course in Illinois over water, power, noise, and land-use concerns.
Environmental advocates in Illinois pressed lawmakers in May to advance the POWER Act, which would require data-center water-use reporting, public benefits agreements, and renewable power generation.
ComEd canceled Monarch Rock Air's transmission security agreement in late July for a proposed hyperscale data center near Rockford, Illinois, delaying its power-development timeline.
Lake County residents sued Grayslake, T5 Data Centers, and Alter Asset Management on July 31 to block approvals for the T5 @ Chicago IV campus in Grayslake, Illinois.
Residents in Essex, Illinois, object to Constellation Energy after land purchases and annexation talks for a potential data center, while an ethics review and local development standards proceed.
7/13/2026 • Community & Local Opposition • General
Illinois mayors and the Illinois General Assembly weigh the POWER Act and local ordinances as AI data-center growth raises grid, noise, and water concerns.
5/11/2026 • Community & Local Opposition • General
Illinois lawmakers consider the proposed POWER Act and related local ordinances for data centers amid AI-driven demand, grid strain, and noise and water concerns.
Chicago Mayor Brandon Johnson signed an executive order Tuesday at Northerly Island establishing data-center safeguards as officials confront rising power, water, and land-use concerns.
Chicago Mayor Brandon Johnson signed data center safeguards and requested a temporary construction moratorium Tuesday in Chicago while stronger regulations are developed.
In a commentary, Rockford resident Jennifer Kuroda opposed Monarch Energy's proposed 1,200-megawatt data center near Rockford, citing power, water, health, and land concerns.
9/27/2026 • Community & Local Opposition • General
Illinois officials and residents are reviewing existing and proposed data centers in DeKalb, Aurora, Normal, and Bloomington as noise, land use, environmental effects, and economic benefits shape local decisions.
Illinois town halls in Pekin, Joliet, and Chicago's southeast side fueled bipartisan legislation in response to proposed hyperscale data center risks to air quality, water quality, and energy bills.
Chicago South Side residents challenged potential data center development at the Illinois Quantum and Microelectronics Park during a Saturday town hall.
8/16/2026 • Community & Local Opposition • General
Cicero trustees scheduled a meeting to consider resolutions opposing rumored data centers tied to a former Hawthorne Race Course sale and a claim near the Stickney Water Reclamation Plant.
7/27/2026 • Community & Local Opposition • General
Karis Critical withdrew a Hoffman Estates rezoning request on June 3 after Plan Commission opposition and canceled Village Board consideration for the Plum Farms data center site.
Normal officials are considering extending the town's data-center moratorium through May 31, 2027, while Illinois lawmakers consider statewide rules addressing electricity, power supply, and environmental impacts.
Illinois lawmakers are considering data center rules and possible BIPA changes during the November veto session in Illinois, amid disputes over privacy, electricity, water and development costs.
Chicago's Permit Review Committee initially approved a proposal led by Igor Gabal to convert part of the landmarked 300 West Adams Building into a data center, pending full commission review.
West Chicago City Council approved a temporary moratorium and will hold an August 10, 2026, meeting at West Chicago City Hall to examine data-center and battery-storage regulation.
Chicago's Permit Review Committee approved on Thursday a plan to convert the lower half of the 12-story 300 West Adams Street office building into a data center despite preservationist opposition.
Normal, Illinois officials reviewed Aurora's data center zoning ordinance after a July 2 site visit and plan participation in a Bloomington public forum on Aug. 26.
Illinois Senator Darby Hills introduced Senate Bill 1050 to impose a temporary moratorium and expand local siting hearings and water and noise protections for data centers.
Hoffman Estates Plan Commission voted 4-2 against rezoning for a proposed data center near Higgins Road and Route 59 after residents opposed the change.
Illinois lawmakers consider POWER Act HB5513 and SB4016, which would add water reporting and grid and renewable oversight for hyperscale data centers as of May 2026.
Normal Town Council approved a six-month data center development moratorium until Nov. 30, while Bloomington City Council considers a similar pause amid water and energy concerns.
Illinois lawmakers in 2026 consider data center regulations focused on water use standards and utility bill impacts, drawing opposition over permitting difficulty.
The Illinois Economic Policy Institute and the University of Illinois Project for Middle Class Renewal estimate that Illinois data center investment over the next decade could create more than 120,000 jobs and nearly $300 million in annual property taxes.
Karis withdrew a Hoffman Estates rezoning request for a proposed data center at Plum Farms in Illinois on July 1, 2026, after resident opposition and Open Meetings Act complaints.
H.E. Holdings withdrew a Hoffman Estates, Illinois rezoning request for the 185-acre Plum Farms data center site before a scheduled village board vote.
Hoffman Estates residents protest Karis Critical plans for a Plum Farms data center after a planning commission vote rejected a zoning-change recommendation.
6/24/2026 • Community & Local Opposition • General
Karis Critical seeks Hoffman Estates zoning change for a 186-acre data center on Plum Farms, after Illinois tax-incentive halts and pending state siting proposals.
6/12/2026 • Community & Local Opposition • General
Bloomington officials hosted a public forum on a proposed hyperscale data center, with residents opposing the project mainly over local water stress and land-use concerns.
The City of Morris, Illinois posted project materials for Morris Technology Park, citing zoning, ComEd capacity, utility planning inputs, and transmission security agreements.
7/15/2026 • Infrastructure & Site Development • General
Illinois Gov. JB Pritzker announced July 1 changes to data center tax incentives and environmental reporting requirements amid concerns about energy bills and water use.
Illinois Governor JB Pritzker paused data center tax incentives in June as Rep. Ann Williams and lawmakers planned summer negotiations on POWER Act regulations.
JB Pritzker announced July 1 pause of Illinois data-center tax incentives, citing power infrastructure strain and water-resource impacts tied to AI demand.
Illinois Governor JB Pritzker ordered a July 1 pause on new state tax incentives for data centers after POWER Act talks and grid plus water affordability concerns.
Illinois Gov. J.B. Pritzker announced a July 1 pause of data-center tax incentive applications, adding public notice and energy-water reporting as costs rise.
JB Pritzker ordered Illinois to pause July 1 processing for the Data Center Investment Program to review incentive impacts on consumer costs and environmental effects.
JB Pritzker ordered DCEO to pause Illinois Data Center Investment Program agreement processing starting July 1 while proposing electricity rate, water permitting, and community impact requirements.
Illinois Governor J. B. Pritzker will pause July 1 processing of data center tax incentive applications to develop reforms on electricity, water, and community impacts.
JB Pritzker ordered Illinois to pause Data Center Investment Program tax incentive processing starting July 1 while an energy and water impact framework is negotiated.
Illinois Governor J.B. Pritzker ordered a July 1 pause of new data center tax incentives, citing energy affordability and water constraints after the POWER Act failed.
Illinois lawmakers extended POWER Act talks after missing the May 31 deadline, with proposals on water-use reporting, community benefits agreements, and renewable energy self-generation.
Sangamon County approved a 280-acre CyrusOne data center as Illinois lawmakers debated the POWER Act on April 22, amid water, aquifer, and drought concerns.
Illinois Governor J.B. Pritzker paused data-center tax incentives after legislative delays, following utility bill and community water and energy cost concerns.
The Illinois Economic Policy Institute projected in a study released in 2025 that data center investment could generate jobs and tax revenue across Illinois by 2035 while increasing electricity demand and costs.
10/5/2026 • Policy & Utility Planning • General
Belleville News-Democrat / Maggie Dougherty and Ben Szalinski47
The Illinois Economic Policy Institute projected that data center investment could support 121,000 jobs and raise electricity costs in Illinois through 2035.
The Illinois Economic Policy Institute estimates that proposed data center investments could create 121,000 jobs and add 6.5 gigawatts of demand in Illinois by 2035.
10/3/2026 • Policy & Utility Planning • General
Capitol City Now / Ben Szalinski and Maggie Dougherty47
The Illinois Economic Policy Institute estimates that data center investment through 2035 could generate $57 billion in spending and increase electricity costs across Illinois.
10/2/2026 • Policy & Utility Planning • General
Capitol News Illinois / Maggie Dougherty and Ben Szalinski47
The Illinois Economic Policy Institute and University of Illinois Project for Middle Class Renewal estimate that Illinois data center investment through 2035 could reach $57 billion, while urging standards on incentives, power, and water.
Illinois advocates and energy policy specialists are supporting the proposed POWER Act to address undisclosed data-center utility arrangements and ratepayer risks in Rock Island County before lawmakers revisit the measure this fall.
8/19/2026 • Community & Local Opposition • General
In Joliet and Yorkville, local officials and residents debated large data center projects in spring 2026 over water use, energy demand, and tax-revenue impacts.
5/30/2026 • Community & Local Opposition • General
The Illinois Pipe Trades Association urged Governor JB Pritzker and state lawmakers to restart the paused Data Center Investment Program and revise privacy rules in Illinois.
8/16/2026 • Project Finance & Incentives • General
Chicago established a Sustainable Data Centers Working Group in 2024, which produced recommendations submitted to the City Council Committee on Environmental Protection and Energy in July 2026.
Illinois lawmakers failed to pass the POWER Act in Springfield, leaving data-center transparency and tax-incentive pause plans unresolved amid power and environmental concerns.
More than a dozen data centers near O'Hare airport are receiving local tax breaks in 2020s-era suburban Illinois, reducing taxable value by nearly $2 billion and prompting homeowner backlash.
8/29/2026 • Project Finance & Incentives • General
Illinois Environmental Council / John Lippert and Jeremy Gorner46
Illinois labor and environmental stakeholders are shaping data-center rules on cooling, power, tax incentives, and local restrictions before the state legislature returns November 17 in Springfield.
Robyn Gabel and Ram Villivalam pursued continued negotiations over the Illinois POWER Act after a May 31 deadline, delaying statewide rules on water, community benefits, and renewable energy for data centers.
5/31/2026 • Policy & Utility Planning • General
Additional18 articles · CI Score below 45
Capitol City Now / Maggie Dougherty and Ben Szalinski45
Illinois gubernatorial candidates JB Pritzker and Darren Bailey are debating data-center incentives and regulations as officials consider stricter energy and water requirements statewide before the 2026 election.
8/18/2026 • Policy & Utility Planning • General
WCBU Peoria Public Radio / Maggie Dougherty and Ben Szalinski45
Illinois gubernatorial candidates JB Pritzker and Darren Bailey are disputing data center incentives and safeguards in Illinois during the 2026 election campaign.
The Illinois Economic Policy Institute projected that data center investment through 2035 could create 121,000 jobs while increasing electricity demand and costs across Illinois.
10/1/2026 • Policy & Utility Planning • General
Illinois Answers Project / Alex Nitkin and A.D. Quig41
An Illinois Answers Project and Chicago Tribune analysis found nearly $100 million in local tax breaks from reduced data-center assessments in northwest suburban Chicago, while Cook County assessor challenges targeted two EdgeConneX facilities in Elk Grove Village.
8/23/2026 • Project Finance & Incentives • General
Illinois Gov. J.B. Pritzker said this year that withdrawn data-center incentives and proposed power and water standards should address concerns raised by Illinois farmers about expanding AI facilities.
Illinois Gov. JB Pritzker seeks statewide rules limiting data center expansion as Elk Grove Village reports operating and under-construction facilities using closed-loop cooling.
Illinois lawmakers proposed the POWER Act in spring 2020s legislation to regulate large data centers, adding BYONCE clean energy capacity and water monitoring requirements.
Illinois Governor JB Pritzker halted new data center tax incentive agreements in 2026, affecting new applications processed under the Data Center Investment Program.
Illinois Governor J.B. Pritzker paused new data center tax incentive agreements while pursuing legislation on utility cost allocation and a ban on data center local government non disclosure agreements.
Illinois legislators and the Illinois Clean Jobs Coalition continued negotiations on the POWER Act after the May 31 General Assembly deadline, delaying proposed water, community, and renewable energy guardrails for data centers.
Illinois Environmental Council supporters rallied at the Illinois State Capitol in May to press legislators for passage of the POWER Act, SB4016 and HB5513.
Craig Johnson and Jen Walling addressed data-center impacts in Elk Grove Village as Illinois lawmakers advanced the Power Act requiring water reporting, Illinois EPA permits, and renewable plus battery-backed power sourcing.
Residents and utility advocates discuss Chicago data center regulation at a Department of Environment community forum ahead of June 30 policy recommendations.
JB Pritzker will pause Illinois Department of Commerce and Economic Opportunity data-center tax incentive application processing starting July 1 and pursue a fall veto-session development framework.