Rochelle City Council unanimously denies data center development agreement

On April 27, the Rochelle City Council unanimously voted to deny a development agreement with Midwest Power Investors for a proposed 48-megawatt, 300,000-square-foot data center. The project, planned for an area north of Steward Road, west of the BNSF railroad, and south of Interstate 88, had been in discussions since the developer contacted the city in 2024, despite owning the site since 2013. The agreement would have seen city-owned Rochelle Municipal Utilities (RMU) provide power, water, sewer, and fiber services, with the developer covering $6.9 million in infrastructure improvements. Council members expressed concerns over the proposed 48-megawatt power demand, which significantly exceeded RMU's largest existing customer at 10 megawatts, and could strain the local power grid, especially given projected statewide capacity shortages by 2029. Council members Kate Shaw-Dickey and Mayor John Bearrows highlighted the need to prioritize community needs and ensure grid stability, suggesting a smaller development might be more appropriate. The decision followed significant public opposition, including a petition with over 1,000 signatures titled "Reject plans for a data center in Rochelle, Illinois," and testimony from residents Christian Bailey and Ben Baar. Residents raised issues regarding minimal job creation, the burden on the power grid, excessive water use, and noise. Representatives from Midwest Power Investors, Zach La Motta and John Favia, advocated for the project, citing property tax benefits, school funding, and its "modest and manageable scale." The council had previously tabled the vote on March 23.