Illinois’ $57B data center boom: 121K jobs, but at what cost?

Illinois is bracing for a $57 billion surge in data center construction by 2035, promising 121,000 jobs. However, only 2,800 of these jobs will be permanent, and rising electricity costs and tax concessions are raising questions about the long-term value of this investment.

Projected jobs and investment

According to TechRadar, Illinois is poised for a $57 billion wave of data center construction by 2035. This surge is expected to create 121,000 jobs, though only 2,800 of these roles are projected to be permanent. The investment equates to roughly $20.2 million per permanent job, a figure that has sparked debate about the long-term economic benefits of such spending.

A 2020-2021 case study cited by TechRadar showed that 13 data center projects generated 8,000 construction jobs, with some workers earning over $100,000 annually. However, the temporary nature of these roles raises questions about their lasting impact on local employment.

Infrastructure and cost concerns

The expansion of data centers is expected to strain Illinois’ electricity infrastructure. TechRadar reports that under a mid-range scenario, data centers could add 6.5 gigawatts of demand to the state’s electricity networks by 2035. This increased demand is projected to raise total electricity system costs by almost 10%, with average residential bills rising by about $150 annually.

The wider PJM Interconnection region, which includes Illinois, could see even steeper increases. Families in this region may face electricity cost hikes of up to $70 per month by 2028, according to projections cited by TechRadar.

Energy providers like ComEd are likely to face increased pressure to expand capacity, which could lead to higher costs for both businesses and residents.

Tax revenue and public incentives

Operational data centers in Illinois could generate nearly $300 million annually in property taxes, potentially reducing residents' property tax bills by 3% to 10%, as reported by TechRadar. This revenue stream is a key argument for supporters of data center expansion, who highlight the long-term financial benefits for local governments.

However, critics, including researchers at Good Jobs First, argue that tax abatements granted to data centers may not deliver sufficient long-term employment benefits. Anthony Elmo and Kristan Wong Karinen, researchers at the organization, have raised concerns about the disparity between the high cost of incentives and the limited number of permanent jobs created.

The debate centers on whether the trade-offs—such as higher electricity costs and infrastructure demands—outweigh the financial gains from increased tax revenue.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

For founders and operators, this story highlights a critical tension between short-term economic boosts and long-term sustainability. The projected $57 billion investment in Illinois data centers promises a surge in construction jobs, but the permanency of these roles is minimal—just 2,800 out of 121,000. This raises questions about the real value of public incentives, especially when weighed against rising infrastructure costs and higher electricity bills for residents.

The data suggests that while data centers can generate significant property tax revenue, the trade-offs—like increased energy costs and limited permanent employment—may not justify the subsidies. For startups in energy, construction, or public policy, this could signal an opportunity to propose alternative models or technologies that mitigate these downsides, such as renewable energy integration or workforce development programs that extend beyond temporary construction roles.

Key takeaways

• Illinois expects $57 billion in data center construction by 2035, with 121,000 jobs created.
• Only 2,800 of these jobs will be permanent, requiring $20.2 million in investment per role.
• Residential electricity costs could rise by $150 annually due to data center demand.
• Data centers may increase total electricity system costs in Illinois by nearly 10%.
• Property tax revenue from operational data centers could reduce residents' property taxes by 3% to 10%.
• Tax abatements for data centers are under scrutiny for their long-term employment benefits.

FAQ

How many permanent jobs will Illinois data centers create by 2035?

Only 2,800 of the projected 121,000 jobs are expected to be permanent.

What is the projected increase in residential electricity bills due to data centers?

Average residential electricity bills in Illinois could rise by about $150 annually due to increased demand from data centers.

How much property tax revenue could operational data centers generate annually?

Operational data centers are projected to generate nearly $300 million annually in property taxes.

Why are tax abatements for data centers controversial?

Critics argue that the high cost of tax abatements—roughly $20.2 million per permanent job—does not provide sufficient long-term employment or economic benefits to justify the expense.

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