DeKalb Times

Oct 18 2023

A recent study by Magnum Economics has revealed that data center incentives in Illinois have revitalized the cloud ecosystem in the Chicago area, resulting in over $4.2 billion in new investment. These incentives have successfully attracted 13 data center projects to the state, generating more than 8,000 jobs for construction workers. Furthermore, newly announced projects are anticipated to bring an additional $4.3 billion in investment to the Greater Chicago market, including clusters of data centers in the downtown area and near O'Hare Airport.

The success of Illinois in attracting data center projects can be attributed to a tax incentive plan implemented in 2019. This plan provides exemptions from state and local sales taxes on data center equipment for 10 years, as long as the projects invest a minimum of $250 million in the facility and create 20 high-paid full-time jobs.

One of the notable data centers in Chicago is Digital Realty's 350 Cermak Road Data Center, which is considered one of the top five data centers in the United States. Originally a printing press built in 1912, this facility has been transformed into one of the world's largest data centers. It boasts 1.1 million square feet of data center space and over 109 megawatts of mission-critical power infrastructure. With a carrier-neutral environment, it serves over 95 enterprise customers, 25 cloud service providers, and more.

The suburbs of Chicago are also experiencing a surge in data center developments. Meta, the parent company of Facebook, is investing $1 billion to expand its data center in DeKalb, home to Northern Illinois University. This expansion will double the size of the data center, reaching a total of 2.4 million square feet. The project is expected to create 200 jobs and marks Meta's 17th data center across the United States.

Representative Jeff Keicher of Sycamore expressed his enthusiasm for Meta's investment in DeKalb, 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 are critical to Illinois' future economic growth and stability."

Another significant data center project is taking shape in Mount Prospect, where the former United Airlines headquarters site is being transformed into a $2.5 billion data center campus. The 1.5 million square foot campus is expected to be operational in 2024, creating 75 to 100 jobs for each of the three planned buildings. During its construction phase, the development will generate up to 3,000 jobs.

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

Representative Charlie Meier of Okawville, who has been working alongside the Illinois Chamber of Commerce for over six years, expressed his excitement about the increasing trend of data center development in Chicagoland. 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."

The data center industry in Illinois is thriving, thanks to the strategic incentives and investments made by both local and international companies. With the continued support from the government and the availability of skilled workers, Illinois is set to maintain its position as a prominent hub for data center development and innovation.

For additional details, please follow this link: https://repkeicher.com/2023/10/18/data-centers-are-booming-business-in-illinois/