Illinois’ accelerating data center expansion could produce $57 billion in investment through 2035, support an estimated 121,000 jobs and eventually generate nearly $300 million annually in property tax revenue, according to a new economic study examining the industry’s statewide impact. Most projected employment would come from temporary construction and related economic activity rather than permanent data center positions, with roughly 2,800 direct permanent jobs expected. The Chicago region is already the nation’s third-largest data center market, while more than 200 facilities are operating or planned statewide. The economic opportunity comes with substantial infrastructure concerns: planned facilities could require another 6.5 gigawatts of electricity—roughly equivalent to powering 4.5 million homes—and researchers estimate residential electricity bills could rise about $12 per month. The findings arrive as Illinois has suspended new applications for its data center tax-incentive program while lawmakers debate whether developers should shoulder more of the costs their enormous power demands impose on utilities and ratepayers.
Key Takeaways
- Approximately $57 billion in planned Illinois data center investment through 2035 could support 121,000 jobs, although most would be temporary construction or indirectly supported positions rather than permanent data center employment.
- Data centers could eventually contribute nearly $300 million annually in additional property taxes, potentially strengthening local financing for schools, libraries, police, fire protection and other services.
- The economic benefits carry substantial costs: projected facilities could require 6.5 gigawatts of additional electricity and increase household utility bills, strengthening arguments that developers—not ordinary ratepayers—should bear infrastructure costs created by their operations.
In-Depth
Illinois has an opportunity to become one of America’s major beneficiaries of the artificial-intelligence infrastructure boom, but policymakers should distinguish genuine economic development from growth subsidized by taxpayers and utility customers.
An estimated $57 billion in data center projects could be developed through 2035, supporting 121,000 jobs and eventually producing nearly $300 million annually in property taxes. Construction trades would capture a significant portion of the employment benefit, while communities hosting facilities could receive substantial new revenue for schools and essential services.
Yet the headline employment figure requires perspective. Most projected jobs are temporary construction or indirectly supported positions, while only about 2,800 are expected to be permanent jobs directly operating the facilities. That does not diminish the construction boom, but taxpayers deserve clarity when politicians promote employment numbers.
Energy presents the larger challenge. Planned facilities could require another 6.5 gigawatts of electricity, potentially raising residential bills by about $12 monthly. Families should not be forced to subsidize infrastructure demanded by some of the world’s wealthiest technology companies.
Illinois has already paused new applications for its data center incentive program. That creates an opportunity to establish sensible rules: welcome private investment, protect property taxpayers, require developers to bear costs attributable to their extraordinary electricity demands and avoid giveaways unnecessary to attract projects. Economic development works best when government establishes predictable rules rather than socializing corporate costs while privatizing corporate gains.
Sources
- https://chicago.suntimes.com/technology/2026/10/01/labor-aligned-group-sees-boon-in-jobs-and-tax-revenues-with-illinois-data-center-growth
- https://www.illinoisepi.org/2026/10/01/data-centers-in-illinois-econimic-impacts-and-key-policy-consideration/
- https://capitolnewsillinois.com/news/report-new-data-centers-could-create-more-than-120k-illinois-jobs-though-mostly-temporary/
- https://dceo.illinois.gov/expandrelocate/incentives/datacenters.html
- https://www.wglt.org/illinois/2026-10-01/report-new-data-centers-could-create-more-than-120k-illinois-jobs-though-mostly-temporary