Illinois data center boom promises jobs but raises energy concerns

By the Editorial Team · Sunday, October 4, 2026

The Illinois Economic Policy Institute projects that $57 billion in data center investments through 2035 will create 121,000 jobs and generate significant property tax revenue in Illinois, though most jobs will be temporary or indirect. The study underscores the need for clear regulatory policies to address environmental concerns, rising energy costs, and public skepticism while maximizing economic benefits.

A recent study by the Illinois Economic Policy Institute (ILEPI) projects that data center development in Illinois over the next decade could generate significant economic benefits, including thousands of jobs and substantial property tax revenue. However, the findings also highlight concerns over environmental impacts and rising energy costs that have fueled public skepticism.

The report estimates that approximately $57 billion will be invested in new data centers through 2035, leading to the creation of 121,000 jobs. Of those, only about 2,800 are expected to be direct, permanent positions within the data centers themselves, while the majority would be temporary jobs related to construction and induced employment in other sectors such as local services and manufacturing. The report anticipates these consumer-demand-induced roles could number 41,751 over the next decade.

ILDPI economist Frank Manzo emphasized the need for guidelines to balance economic growth with public concerns, stating that policymakers must address a “trust deficit” surrounding the industry. The study offers 10 policy recommendations aimed at fostering responsible development while maintaining Illinois’ ability to attract data center investment. These include instituting clear regulatory standards rather than broad moratoriums, which Manzo argued could drive business to neighboring states.

Illinois currently hosts more than 240 planned or operating data centers, approximately 19 per one million residents. The Department of Commerce and Economic Opportunity estimated that in 2025, these facilities benefited from tax breaks exceeding $660 million. Once operational, new data centers could generate close to $300 million in annual property tax revenue. This additional revenue has the potential to reduce local property taxes by 3 to 10 percent if tax abatements are not granted, though the impact varies depending on the facility’s size and the locality.

The study highlighted DeKalb County as an example where data centers have contributed to property tax revenues, with the tech company Meta paying $31 million in property taxes on its new data center in 2024. Despite this, local average property tax increases were about 2 percent—lower than the state average of 6 percent—partly due to tax abatements granted to Meta. This has drawn criticism from policy experts like Kristan Wong Karinen of Good Jobs First, who warned that such subsidies undermine the potential fiscal benefits for residents and called for bans on local property tax breaks for data centers.

While the report touts well-paying construction jobs—some exceeding six-figure salaries during peak periods—it questions the long-term employment value of data centers. Anthony Elmo, another Good Jobs First researcher, noted that developers are investing roughly $20.2 million per permanent job created, and expressed concern that as technology evolves, the demand for onsite employees could decline further.

Energy consumption is another critical issue identified in the report. Data centers operate continuously and require substantial power and water resources, potentially increasing average residential energy bills by approximately $150 annually. Balancing these costs against the economic benefits remains a key challenge for policymakers navigating the sector’s growth in Illinois.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.