Data centers could generate $57B over next decade in Illinois if public backlash addressed, study says
A study by Illinois labor-affiliated think tanks estimates that planned data centers could generate $57 billion in investment, 120,000 jobs and $300 million in annual property tax revenue over the next decade. The report also highlights backlash over electricity demand, water use and rising residential power costs, and recommends policy changes including rate caps, closed-loop cooling and more targeted tax incentives.
A study from the Illinois Economic Policy Institute and the Project for Middle Class Renewal at the University of Illinois at Urbana-Champaign projects that data centers planned for Illinois could bring $57 billion in investment, 120,000 jobs and roughly $300 million in annual property tax revenue over the next decade. The Chicago region is already the nation’s third-largest data center market, while Illinois ranks 10th among states by data center density.
The study’s authors, including economist Frank Manzo, said the facilities could also intensify pressure on the state’s power grid and water resources. Planned developments would require an estimated 6.5 gigawatts of electricity and could increase average residential electricity bills by about $12 per month under current regulations. The report cited growing bipartisan opposition and called for measures such as capping residential rate increases, requiring closed-loop cooling, expediting grid connections for facilities with dedicated clean power, and restricting local tax incentives.
Gov. J.B. Pritzker has paused state data center incentives while assessing their consumer and environmental effects and has urged developers to provide clean energy and use closed-loop water systems. State agencies have warned that the Commonwealth Edison and Ameren service areas may lack sufficient resources to meet 2030 requirements as data center demand grows, while Pritzker said a blanket moratorium alone would not resolve the issue.