Rochelle City Council tables development agreement for potential data center

The Rochelle City Council in Illinois recently voted 4-3 to table a development agreement for a proposed 48-megawatt data center, pausing a decision on the project. Developer Midwest Power Investors has been working with the city since 2024 on the 300,000-square-foot facility, planned north of Steward Road. The developer committed to funding all $4.1 million in Rochelle Municipal Utilities (RMU) electrical improvements, including substation upgrades, and an estimated $2.8 million for water and sewer infrastructure, along with roadway improvements. Interim City Manager Sam Tesreau highlighted potential benefits for the city, including expanded infrastructure, over $1 million in annual RMU revenue, and approximately $400,000 for the city's utility tax fund. The project, eligible for a state property tax abatement, is projected to generate about $3.5 million in annual property taxes, with Rochelle school districts receiving $2.1 million. However, the proposal faces significant resident opposition, with a petition titled "Reject plans for a data center in Rochelle, Illinois" garnering 830 signatures. Resident Megan Sneyd expressed concerns during the public meeting about limited job creation, substantial resource consumption, and the developer's lack of local ties. Mayor John Bearrows, while open to the first phase, preferred industrial development over data centers due to concerns about tying up RMU's electrical capacity and resident feedback. Council members also expressed reservations about future expansion phases beyond the initial 48 MW. The motion to table was made by City Council member Bil Hayes, postponing a vote to a future meeting.