Data center activity in Illinois
Illinois faces a saturated moratorium environment, with at least 85 enacted and only 8 rejected, alongside opposition that more often wins than loses, with at least 13 projects blocked versus 6 approved despite resistance. The zoning picture is more encouraging, with at least 52 approvals against 15 denials, indicating that the permitting process itself remains functional even as broader political headwinds mount. With 80 active companies and 870 clips, the state's role as a major interconnection hub in the Chicago metro ensures persistent developer interest despite regulatory challenges. Compared to neighboring Indiana, which has a significantly better zoning approval rate and more favorable opposition outcomes, Illinois developers face a tougher overall regulatory path, particularly in suburban and rural communities where moratorium adoption has been most aggressive.
Illinois faces a saturated moratorium environment, with at least 85 enacted and only 8 rejected, alongside opposition that more often wins than loses, with at least 13 projects blocked versus 6 approved despite resistance. The zoning picture is more encouraging, with at least 52 approvals against 15 denials, indicating that the permitting process itself remains functional even as broader political headwinds mount. With 80 active companies and 870 clips, the state's role as a major interconnection hub in the Chicago metro ensures persistent developer interest despite regulatory challenges. Compared to neighboring Indiana, which has a significantly better zoning approval rate and more favorable opposition outcomes, Illinois developers face a tougher overall regulatory path, particularly in suburban and rural communities where moratorium adoption has been most aggressive.
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During a recent event, Illinois Governor JB Pritzker was questioned about growing public anger and concerns regarding data center developments in the state. The governor addressed the sentiment around these facilities, acknowledging public opinion on the issue.
The Effingham City Planner, Greg Koester, presented three suggested zoning amendments to the city council. These proposals address battery energy storage systems, accessory dwelling units, and the combination of zoning districts. The city council is currently considering these changes.
Extreme heat and the growing energy demands of AI data centers are posing significant challenges to grid reliability. Policymakers and communities are seeking ways to prevent blackouts and manage these impacts, with a focus on leveraging moratoriums and demanding sustainable development practices from data center developers.
Jackson County in Illinois is currently reviewing its authority regarding data center development. This process likely involves assessing existing regulations and considering potential new rules or frameworks for such projects within the county.
Data center developer Hut 8 has filed an application with the Village of Latham to rezone farmland. This rezoning is sought to facilitate the development of a new data center project in the area.
The Village of Machesney Park, Illinois, is developing new regulations for data center development, despite not having any current proposals. The proposed rules will require special use permits, public meetings, and confirmation of utility capacity for future projects. This proactive approach aims to address potential concerns from residents regarding utility use and neighborhood impact.
The state of Illinois is reportedly altering its approach to data center development and policy. Specific details regarding the nature of these policy shifts are not available in the provided article text.
White Rose Partners is proceeding with plans to build a 200,000-square-foot data center in South Elgin, Illinois, despite initial opposition from village board members and residents. The developer launched a website to provide transparent information ahead of upcoming hearings, where they seek a fair review of their proposal, which involves annexing and rezoning the property.
Machesney Park is considering new regulations to control data center development, proposing to restrict construction to industrial zones and require special use permits. This initiative follows neighboring Rockford's consideration of a temporary moratorium, with the Machesney Park Planning and Zoning Commission expected to review the amendment.
The Village of Machesney Park, Illinois, is considering new regulations for data center developments, including a 1000-foot setback from residential properties, a 20-foot landscaping buffer, and requiring special use permits. Developers would also need to hold public meetings and demonstrate utility capacity. The Planning and Zoning Commission will review these proposed regulations on July 27.
The Village of North Pekin is drafting a data center ordinance to establish clear regulations and potentially restrict large data center developments. This initiative aims to address a lack of specific guidelines for data centers. Concurrently, a vote on rezoning a former AMC theater to light industrial, potentially for a data center, has been rescheduled.
The White County Board approved a 12-month moratorium on data center development during their Tuesday night meeting. This decision followed discussions, including a recent Carmi City Council meeting.
Machesney Park, Illinois, is considering new regulations for future data center developments to address potential impacts on neighborhoods, utilities, and quality of life. The proposed text amendment would restrict data centers to industrial zones, require Special Use Permits, and mandate public informational meetings and utility capacity confirmation. The Planning and Zoning Commission is set to review the proposal.
The City of Yorkville will no longer provide annual tax incentives to the developers of the CyrusOne data center after the developers agreed to pay the city a one-time $15 million up-front payment. This payment will primarily benefit the Yorkville School District 115 for school construction. This change affects the previously approved CyrusOne project, as well as the Project Cardinal and Project Steel data centers, none of which will receive city incentives.
Hut 8 Corp. is attempting to bypass Logan County Board scrutiny for its proposed 500-megawatt data center by seeking annexation and zoning approval from the Latham Village Board. This strategy includes a significant community benefit agreement for the village but has angered project opponents. The Village Board is set to vote on the annexation and agreements on August 3rd, while zoning requests are still pending with the county.
Machesney Park, Illinois, is proposing new regulations for data center development, including zoning restrictions and a special use permit process with public meetings, proactively addressing concerns before any projects are proposed. This comes as neighboring Rockford considers a temporary moratorium on data center development amidst public opposition to a potential project by Monarch Energy.
Morton Industries is expanding its manufacturing operations to East Peoria, Illinois. This new facility will focus on producing tubes for data center cooling and hydraulics. The expansion is expected to bring new job opportunities and economic growth to the East Peoria community.
Morris, Illinois residents continue to voice strong opposition to a 340-acre data center project despite its approval by the City Council in August 2025. Concerns primarily revolve around water usage, electricity consumption, and potential environmental impacts. The city is preparing an ordinance to establish guardrails for future data center development.
The Rockford City Council has sent a proposal for a six-month data center moratorium to its Code and Regulation Committee. This pause would allow council members to develop guidelines and amend city codes regarding data centers. The proposal is believed to not affect Monarch Energy's existing zoning but would impact its eligibility for TIF district tax benefits.
Rockford city leaders are planning to propose a moratorium on future data centers within the city. This proposal is expected to be introduced on Monday night, indicating a proactive stance by the local government regarding data center development.