Labor-aligned group sees boon in jobs and tax revenues with Illinois data center growth
A report from the Illinois Economic Policy Institute and the University of Illinois projects that planned data center development could create 121,000 mostly temporary construction jobs and nearly $300 million in annual property tax revenue. The report also warns that the projects could increase electricity costs and place added pressure on the power grid and water resources.
Planned Illinois data center projects valued at an estimated $57 billion through 2035 could generate 121,000 mostly temporary skilled-trade and construction jobs and nearly $300 million in annual property tax revenue, according to a report from the Illinois Economic Policy Institute and the University of Illinois. The report cites T5 Data Center's Northlake facility and a large planned site in Joliet as examples of the state's expansion.
Study author Frank Manzo said the projects could increase household electric bills by about $12 per month and require 6.5 gigawatts of electricity. The report recommends stronger safeguards, including limits on utility rate increases, clean-energy requirements and cost-sharing agreements. Gov. J.B. Pritzker has formed an Illinois AI cabinet to examine data center-related energy risks, while his administration has paused state tax incentives for data center construction for two years.
State Rep. Ann Williams said lawmakers should prioritize ratepayer protections, grid capacity and safeguards for water and other resources. A broader data center energy and water regulatory package known as the POWER Act failed to pass last spring, although legislative discussions continue amid concerns about utility costs, water consumption and noise pollution.