Why so many data center projects are being proposed in and around Chicago

The Chicago metropolitan area is experiencing a boom in data center construction, with many large-scale projects being proposed and approved, such as a significant development recently greenlit in Joliet. These facilities, often described as "massive AI warehouses," are generating both economic interest and controversy in communities throughout Illinois. While some projects, like the one in Joliet and a planned 1,000-acre facility dubbed Project Cardinal in Yorkville, are moving forward, others have faced setbacks. Two data center projects in Chicago's western suburbs reportedly failed in recent weeks, reflecting community resistance. Professor Lav Varshney highlights Illinois' appeal for data center developers, citing its flat terrain, which simplifies construction, and its central location with reliable power grid connectivity, particularly near Lake Michigan. However, the projects raise concerns about their substantial consumption of space, energy, and water, regardless of whether they are sprawling suburban campuses or smaller, high-speed fiber-linked facilities within the city, like one currently under construction in the South Loop. In response to these environmental and resource concerns, some lawmakers in Springfield are advocating for the "Power Act" to introduce regulations on data center water and electricity usage. Despite these issues, cities like Joliet are motivated to approve these developments due to the substantial tax revenues, potentially billions of dollars, they could generate.