DeKalb and Aurora are flush with data center cash. They differ in how to spend it
DeKalb and Aurora, Illinois, are generating significant tax revenue from data centers, but they have different approaches to spending it. DeKalb has used funds from Meta for specific projects like a new elementary school and property tax relief, while Aurora is exercising caution with revenue from CME Group and CyrusOne, saving it due to uncertainties about the data center industry's future.
DeKalb and Aurora, Illinois are benefiting from substantial property and utility tax revenues from data center operations but are approaching the use of these funds differently.
In DeKalb, the Meta Data Center has generated $72 million in property tax revenue since 2022, deemed "transformational" by City Manager Bill Nicklas. The majority of this, about 60%, goes to schools, with the DeKalb Community Unit School District 428 receiving nearly $32 million in the first three years. This revenue facilitated the opening of the $34 million Dr. Leroy A. Mitchell Elementary School and helped alleviate property tax burdens by allowing the school district to under levy. Superintendent Billy Hueramo noted that Meta's presence accelerated the school's achievements rather than solely causing them, and shifted the primary tax burden from residents to industry. The data center also contributed to an increase in DeKalb's valuation from $600 million to nearly $2 billion and led to infrastructure upgrades like new traffic lights, although Meta's direct traffic impact is low. The chosen site, while rural, was not actively farmed and was deemed economically more profitable than agriculture.
Conversely, Aurora city officials are taking a cautious approach to data center revenue from facilities like those operated by CME Group and CyrusOne. Director of Sustainability Alison Lindburg stated that Aurora receives utility tax revenue, estimated at about $11,000 per megawatt, and property tax, but the city is not earmarking funds for specific projects yet. This caution stems from citizen and city employee concerns about the long-term reliability of data center revenue, citing potential risks like an "AI bubble popping" or technological shifts. Planning and Zoning Director Tracey Vacek noted that Aurora's ordinances require data centers to decommission systems and include modifications like parking to increase the likelihood of facility reuse if they leave. The CyrusOne data center in Aurora has also faced consistent noise complaints from nearby residents.