Data center pitch vs. pushback: Metro-east towns weigh tax cuts, power rate risks

Metro-east communities in Illinois, including Troy, Edwardsville, and Granite City, are grappling with proposals for data centers, primarily from Houston-based Cloverleaf Infrastructure. Local officials and developers highlight potential property tax revenue windfalls and give assurances that power infrastructure upgrade costs won't burden existing utility customers. Granite City economic development director Cathy Hamilton and Mayor Mike Parkinson project significant tax cuts for residents, using a DeKalb, Illinois, data center as a benchmark. Madison County Board Chairman Chris Slusser made similar projections for Troy, suggesting 30% to 40% tax bill savings. However, residents, organized by groups like Troy Residents for Responsible Growth, and consumer advocates, such as Scott Allen from the Citizens Utility Board, dispute these benefits. They warn of risks like utility cost pass-throughs if data centers are short-lived, despite assurances from Ameren Illinois and developers. Prescott Balch, a Wisconsin resident who helped defeat a Microsoft data center in Caledonia, cautioned against over-reliance on volatile tech industry tax revenues, particularly for small communities. In response to these concerns, Troy recently enacted a six-month moratorium on data center proposals to consider stricter zoning rules. Granite City is also updating its zoning ordinance, with a public hearing scheduled for April 2nd. The Midcontinent Independent System Operator (MISO), overseeing the central US power grid, is monitoring data center development across its footprint, including Illinois and Missouri, and implementing "fast track processes" for grid upgrades to meet demand.