Updates on Illinois Data Center Development
What's happening with Illinois and Data Center Development?
Projects
Illinois Datacenter Landscape
Illinois is currently experiencing the largest wave of datacenter investment in the state's history. Learn about the datacenters project proposals and current projects in 2026:
Title | Location | Developer | Capacity | Project Stage |
|---|---|---|---|---|
T5 Chicago IV Data Center | Grayslake | T5 Data Centers | 1.2 GW IT capacity (Phase 1: 480 MW by 2027) | Planning stage; phased development, first phase expected 2027 |
Equinix Minooka Data Center | Minooka, near Ridge/Holt Road | Equinix | Not disclosed (300-acre campus) | Initial stage: rezoning approved, land clearing expected end of 2025; main construction in 2027; commissioning by 2031 |
CyrusOne CHI1-CHI3 Campus | Aurora Campus, Chicago | CyrusOne | 109 MW | CHI3 Under construction; broke ground Sep 2024; scalable delivery starting with 40 MW |
T5 Chicago III Data Center | 11650 W Grand Ave, Northlake | T5 Data Centers | 36 MW | Under construction; broke ground Q4 2024; top-out in May 2025; go-live expected 2027 |
Edged Chicago Data Center | 2835 Bilter Road, Aurora | Edged Energy US | 96 MW total (ORD01-1: 24 MW; ORD01-2: 72 MW) | Phase 1 live (Feb 2025); ORD01-2 broke ground Nov 2025; full buildout expected by 2027 |
Leadership
Upcoming Illinois Election Dates
Illinois state executive official elections will be held in November 2026. The six executive offices that are up for election are Governor, Lieutenant Governor, Attorney General, Secretary of State, Comptroller, and Treasurer.
The U.S. House of Representatives will elect seventeen candidates in the election. This year, Illinois will elect one member to the U.S. Senate in the general election.
Legislation
The POWER Act
The Illinois POWER Act (SB4016/HB5513), introduced in early 2026, is proposed legislation designed to regulate data centers, requiring them to use renewable energy, pay for their own infrastructure, and adopt sustainable water usage. It aims to protect consumers from increased utility bills, manage power grid demand, and limit environmental impact.
Data Center Investment Program (DCIP)
The Illinois Data Center Investment Program, administered by the DCEO, offers significant tax incentives, including sales tax exemptions, to developers investing at least $250 million and creating 20+ jobs, fostering massive projects like the $12B Monarch Energy development in Rockford. While driving billions in investment, these incentives are undergoing review due to energy/water concerns and calls for greater sustainability.
On February 18, 2026, Governor Pritzker announced a two-year suspension of state tax incentives for new datacenter developments, effective July 1, 2026. The announcement came during his FY2027 budget address, signaling a dramatic shift from the state's previous growth-at-all-costs posture.
SB4004: Mahomet Aquifer Protection
Illinois SB4004, the "Data Center Water Transparency and Aquifer Protection Act," prohibits new data centers from using water from the Mahomet Aquifer starting Jan. 1, 2027. Existing data centers must transition to alternative water sources by Jan. 1, 2028. The bill protects a vital water source for over one million people, ensures water usage transparency, and prohibits local governments from concealing data center water use through confidentiality agreements.