Rockford data center developer has tax incentive deal in place with the state, records request shows
A data center developer, Monarch Rock Air (tied to Monarch Energy), has secured a state tax incentive agreement for a proposed 1,400-megawatt data center campus in Rockford, Illinois. This agreement was signed just before a state deadline, and Rockford city officials stated they were unaware of it. Residents have expressed significant concerns regarding the project's environmental impact, noise, water, and electricity usage.
Monarch Rock Air, an LLC connected to California-based Monarch Energy, has entered into a tax incentive agreement with the Illinois Department of Commerce and Economic Opportunity (DCEO) for a planned 1,400-megawatt data center in Rockford, Illinois. The agreement, obtained via a Freedom of Information Act request, was finalized on June 5 by Monarch and June 11 by the DCEO, ahead of Governor JB Pritzker's July 1 deadline for the Data Center Investment Program.
The memorandum of understanding grants Monarch tax exemptions and a 20% tax credit on construction wages, requiring the company to invest at least $250 million over five years and employ a minimum of 100 full-time workers with wages exceeding 120% of Winnebago County's average. Despite the state agreement, Rockford city staff and Mayor Tom McNamara stated they were unaware of the deal. Monarch had previously indicated a potential investment of $12 billion for the facility, which is mandated to be carbon neutral and possess green building certifications.
Local residents have actively opposed the proposed data center, citing concerns about noise pollution, water consumption, energy usage, and potential impacts on electricity rates, with many attending City Council meetings to voice their objections. While data centers are a permitted use under existing zoning for the identified land, the City Council has not yet approved any requests directly related to the data center, though it is set to consider a proposed tax-increment finance district that includes the project area.