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Data Centers in Illinois

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Explore Markets in Illinois

Illinois – Central Hub for US Digital Infrastructure

Illinois stands as a premier US market for data center colocation, offering a superb blend of dense connectivity, extensive cloud access, and significant, long-term tax incentives. It is the critical hub for any organization requiring low-latency access to Midwest and national markets, ensuring high performance for mission-critical applications. The state's mature infrastructure and favorable business climate make it a strategic choice for enterprises focused on uptime and scalable growth.

Illinois: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Top-tier US market with dense fiber and extensive long-haul and regional network routes.
Direct Cloud On-RampsOver 7 – as of September 2025AWS, Azure, Google Cloud (GCP), IBM Cloud, and Oracle Cloud are all available.
Power Cost$0.08 - $0.11/kWhIncludes 54.89% low-carbon sources in its generation mix as of 2023.
Disaster RiskModerate (49.54 Score)Primary risks are weather-related; outside major earthquake and hurricane zones.
Tax IncentivesYesMultiple DC-specific programs offering long-term tax exemptions on equipment and other credits.
Sales Tax6.25% (State Rate) – as of September 2025Qualifying data centers may be eligible for exemptions, significantly lowering total project cost.

Network & Connectivity Ecosystem

Illinois, and Chicago in particular, is one of the most connected locations in North America. Its central location made it a historic railway and telegraph hub, a legacy that continues today with data infrastructure.

Carrier Density & Carrier Neutrality: With over 77 providers, as of September 2025, Illinois offers exceptional carrier diversity. This density is concentrated in carrier-neutral facilities, primarily in the Chicago metro area, giving customers competitive options for transit, transport, and private connectivity.

Direct Cloud On-Ramps: Illinois provides direct, low-latency connections to major cloud providers. With over 7 on-ramps and access to 16 cloud regions as of September 2025, organizations can establish private connections to AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud for secure, high-performance hybrid cloud deployments.

Internet Exchange Points (IXPs): The market is anchored by major exchange points like the Equinix Chicago IX and CoreSite's Any2Exchange. These IXPs facilitate efficient, low-cost traffic exchange between networks, reducing latency for users across the Midwest.

Bare Metal: Bare metal server availability is excellent. Providers like Hivelocity and ColoCrossing offer dedicated server solutions, giving businesses direct control over hardware for performance-sensitive workloads.

Power Analysis

Illinois provides a stable power environment with a clear focus on integrating renewable energy sources.

Average Cost Of Power: Industrial electricity rates typically range from $0.08 to $0.11/kWh, as of September 2025. This competitive pricing, combined with a grid that sourced 54.89% of its energy from low-carbon sources in 2023, offers a good balance of cost and sustainability.

Power Grid Reliability: The power grid, particularly in the Chicago area where most data centers are located, is well-engineered and highly reliable. Major facilities are supported by redundant substations from ComEd, ensuring high levels of uptime required for critical operations.

Market Access, Business & Tax Climate

Illinois's strategic advantages extend beyond its technical infrastructure, offering significant business and financial benefits.

Proximity To Key Business Districts: Data centers in the Chicago metro area, especially downtown and suburban Elk Grove Village, are located near major financial, trading, healthcare, and logistics hubs. This proximity is critical for applications requiring minimal latency, such as financial trading and real-time analytics.

Regional Market Reach: From its central location, Illinois serves as an ideal hub for reaching consumers and business partners across the Midwest and the entire United States. A data center in Illinois can effectively serve a population of tens of millions within a low-latency network radius.

Tax Advantage For Data Centers: The state offers one of the most aggressive data center incentive programs in the country. Qualifying projects can receive a 20-year exemption from state and local sales tax on equipment, plus other valuable tax credits, which substantially reduces both initial capital investment and ongoing operational costs.

Natural Disaster Risk

Illinois has a moderate risk profile for natural disasters, with a FEMA National Risk Index Score of 49.54 out of 100, as of September 2025. This score is considered relatively low compared to coastal states or those in seismically active zones.

The primary environmental risks are weather-related and include:

  • Tornado
  • Severe Wind
  • Winter Weather
  • Riverine Flooding
  • Hail
  • Severe Storms
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