Illinois data center boom promises jobs but raises energy concerns
AgenciesA new study predicts data centers expected to be built in Illinois over the next decade would create thousands of jobs and millions of dollars in new property tax revenue.B...
A new study predicts that data centers planned for construction in Illinois over the next decade could generate thousands of jobs and millions of dollars in property tax revenue. However, there are concerns that these benefits may not materialize as expected or that the environmental and energy costs may outweigh the economic gains.
According to the Illinois Economic Policy Institute (ILEPI), $57 billion worth of investments in data centers by 2035 will create 121,000 jobs, with just 2,800 of them being permanent positions. The report suggests that data centers could generate $300 million in annual property tax revenue for local governments, which could potentially lower property taxes for residents by 3-10% without offering any tax abatements.
While the tech company Meta paid $31 million in property taxes for their new data center in DeKalb County, average property taxes in the county only increased by about 2% in 2024. The report also recommends banning local property tax breaks to ensure that data centers contribute more to reducing local tax burdens. Despite the potential economic benefits, the report highlights the significant energy consumption and costs associated with data centers. Average residential bills could increase by around $12 per month, or $150 per year.
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