Incentive deal for proposed Rockford data center shows possible development timeline
The state of Illinois has awarded tax incentives to Monarch Energy for its proposed "Rock Air" data center project in Rockford, a 1,400 MW facility planned for 1,300 acres. This incentive agreement was signed shortly before Governor JB Pritzker temporarily froze the state's Data Center Investment Program. The City of Rockford was not involved in the agreement, as local government approval is not required under the state program.
The state of Illinois has awarded a tax incentive agreement to Monarch Energy for its proposed "Rock Air" data center project, a significant development planned for Rockford. The 28-page document, obtained via a public records request, details the potential benefits for the southern California-based company's project, which is slated for 1300 acres at 8685 Friday Rd. along Rockford's southern edge.
The agreement outlines a massive 1,400 MW phased data center designed to support large-scale digital infrastructure and high-capacity IT operations. Monarch Vice President Charles Koontz signed the deal on June 5, followed by the state's signature on June 11. This occurred just prior to Governor JB Pritzker's directive, effective July 1, to the Illinois Department of Commerce and Economic Opportunity (DCEO) to temporarily halt processing agreements for the state's Data Center Investment Program. Governor Pritzker stated the freeze was necessary to protect working families and local communities amidst the rapid expansion of the data center industry.
Under the terms of the incentive deal, Monarch Energy is required to maintain operations for a minimum of 20 years once the facility opens and must place it in service by March 11, 2031. The company also needs to make a capital investment of at least $250 million and hire at least 100 employees, with roles distributed across operations, maintenance, and executive positions, to commence between 2028 and 2031. Additionally, the state mandates that the facility achieve carbon neutrality within two years of beginning operations.
The City of Rockford acknowledged the agreement in an FAQ, noting that it was signed by both parties without the City's knowledge or involvement, as local government approval is not a prerequisite for the state program. The City also clarified that the Memorandum of Understanding (MOU) does not identify a specific data center end-user, such as Google, Microsoft, or Meta, aligning with their prior understanding.