• Illinois data centers could create 121,000 jobs, yet only 2,800 of those jobs would last.
• Each lasting Illinois data center job equals roughly $20.2 million of investment.
• Average Illinois households could pay about $150 more yearly for electricity.

Illinois is facing a projected $57 billion wave of data center construction that could generate 121,000 jobs through 2035.

Yet only 2,800 positions would remain after construction, while residential customers could face electricity increases approaching $150 annually.

These findings have intensified questions about whether economic gains can justify mounting infrastructure demands, tax concessions, and higher power costs.

Jobs and tax revenue dominate the economic case for expansion

The Illinois Economic Policy Institute (ILEPI) estimates construction and related activity would produce most of the projected employment during the coming decade.

In 2020 and 2021, 13 data center projects generated 8,000 construction jobs, with some workers earning more than $100,000 annually.

That figure illustrates the potential wages associated with building facilities, but it does not represent permanent employment at completed sites.

The new projection estimates that 41,751 jobs could arise from increased consumer spending across Illinois in the coming decade.

Those positions could include restaurant workers, factory employees, and others benefiting indirectly from construction-related economic activity.

The long-term employment figure is considerably smaller, with researchers estimating that only 2,800 positions would remain after the facilities become operational.

That means the $57 billion investment would amount to roughly $20.2 million for every permanent data center position created.

The relatively small number of lasting jobs has prompted questions about whether public incentives provide sufficient employment benefits compared with their cost.

“If this were completely private money, it would be a different story. These taxpayer dollars need to actually incentivize good, long-term jobs and they’re not,” said Anthony Elmo, a researcher with Good Jobs First.

Besides jobs, property taxes are another potential economic benefit of these data centers to local residents.

Operational facilities could generate nearly $300 million annually, and researchers estimate that, without tax abatements, this revenue could reduce residents’ property taxes by 3% to 10%.

However, critics argue that stronger requirements should accompany incentives offered to companies developing large facilities.

“Abating the taxes doesn’t help you at all. It just hurts any kind of gain you could have had from it,” said Kristan Wong Karinen, a Good Jobs First researcher.

Electricity costs could challenge the economic case

A potential downside for residents is the effect data center operations could have on electricity bills.

Researchers estimate average residential electricity bills could rise by about $12 monthly, equivalent to roughly $150 annually for households statewide.

The estimate assumes data centers add 6.5 gigawatts of demand to Illinois electricity networks by 2035 under a mid-range scenario.

According to ILEPI, the additional demand could increase total electricity system costs in Illinois by almost 10%.

A separate projection from PJM Interconnection, the regional organization that coordinates electricity transmission across parts of the eastern United States, estimates that data centers could add 10.7 GW of electricity demand within ComEd’s northern Illinois service area by 2035, although some planned facilities may never operate.

Also, an environmental analysis estimates that families across the wider PJM region could face electricity increases reaching $70 monthly by 2028.

These separate projections indicate that rising data center demand could create additional costs for electricity consumers.

Via Illinois Times