Metro East Sun

According to a recent study by Magnum Economics, data center incentives in Illinois have revitalized the cloud ecosystem in the Chicago area, attracting over $4.2 billion in new investment. These incentives have led to the establishment of 13 data center projects, creating more than 8,000 jobs for construction workers. The Greater Chicago market, including downtown and suburbs near O'Hare Airport, is expecting an additional $4.3 billion in investment from newly announced projects.

The success of these incentives can be attributed to a 2019 tax incentive plan that aimed to jump-start data center development in Illinois. The plan grants data center projects exemptions from state and local sales taxes on data center equipment for 10 years, as long as they invest a minimum of $250 million in the facility and create 20 high-paid full-time jobs.

Representative Charlie Meier, who has been working with the Illinois Chamber of Commerce for over six years on legislation to attract more data centers to the state, shared his enthusiasm for the recent trends in data center development. He stated, "The recent skyrocketing trends for data center development in Chicagoland are very exciting news for Illinois' economy. In southern Illinois, we have the space, we have the incentives, and we have the job seekers ready for these developments to come to our region as well. The tax incentives are an incredible tool to help attract these companies. I will continue to work to make this a reality."

Chicago is already home to one of the top five data centers in the United States, Digital Realty's 350 Cermak Road Data Center. This facility, originally built as a printing press in 1912, has been retrofitted to become one of the largest data centers in the world. With 1.1 million square feet of data center space and over 109 megawatts of mission-critical power infrastructure, it serves as a premier mission-critical interconnection, multi-tenant colocation, and telecommunications facility in the Midwest.

Data centers are also flourishing in the Chicago suburbs. Meta, the parent company of Facebook, is expanding its data center in DeKalb, home to Northern Illinois University. The tech giant is investing $1 billion to more than double the size of the data center, reaching a total of 2.4 million square feet. This project is expected to create 200 jobs and will be Facebook's 17th data center across the United States. Representative Jeff Keicher expressed his support for Meta's investment, stating, "Meta's investment into DeKalb underscores how Illinois can attract business development the right way. At a time of so much economic uncertainty and rising inflation, the right tax incentives can help turn things around. The creation and retention of good paying jobs is critical to Illinois' future economic growth and stability."

Furthermore, the former United Airlines headquarters in Mount Prospect is being transformed into a $2.5 billion data center campus. Construction began last year, and the campus is set to launch in 2024. The development will consist of three buildings, creating 75 to 100 jobs for each of them and generating up to 3,000 construction jobs during the building phase.

The Chicagoland Chamber of Commerce and Data Center Coalition reported that in 2020, six new data centers committed to investing at least $1.7 billion, while in 2021, seven additional data center developments committed to investing at least $2.5 billion. As of May 31, 2022, these projects have already delivered $3.3 billion in total investment. Notable contributions include Meta's $800 million investment in DeKalb and three Microsoft projects totaling over $900 million.

The influx of data center investments in Illinois is providing a significant boost to the state's economy. The tax incentives and strategic location of Chicago and its suburbs have attracted billions of dollars in investments and created thousands of jobs. With the continued support of legislators and the business community, Illinois is well-positioned to remain a thriving hub for data center development and innovation.

To learn more, click on this link: https://charliemeier.net/2023/10/16/data-centers-are-big-business-in-illinois/