New study: Illinois data centers could cut resident property taxes by 3-10% | The Chicago Report
A new study projects that data center development in Illinois could generate $57 billion in investment and about 120,000 jobs over the next decade. The report also warns that data centers could raise household electricity bills by as much as $12 per month unless developers pay their full energy and grid costs, use low-water cooling systems and avoid property tax abatements.
A study discussed by Illinois Economic Policy Institute economist Frank Manzo estimates that data center development could bring $57 billion in investment and create roughly 120,000 jobs over 10 years. About 40,000 of those jobs would be in skilled construction, while the remainder would come from supply chains and increased consumer demand. The report projects that data center property taxes could reduce residential property tax burdens by 3% to 10% in Illinois counties if developers do not receive abatements.
The study also highlights growing public concern over water use, electricity demand and transparency. It estimates that data center expansion could increase household electric bills by up to $12 per month under current policies, and recommends requiring developers to fund their own energy, interconnection and transmission costs, bring new clean power online, use cooling systems that consume little or no water, and disclose agreements with public officials. Manzo cited Meta's data center in DeKalb as an example of a facility generating substantial property tax revenue, while acknowledging that public backlash could delay or cancel some proposed projects.