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Data Centers in Illinois

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Explore Markets in Illinois

Illinois – Central Hub for US Connectivity

Illinois, anchored by the global connectivity hub of Chicago, offers a premier market for enterprises requiring low-latency access to the entire United States. Its dense ecosystem of networks, cloud providers, and financial exchanges makes it a critical location for any national digital infrastructure strategy, ensuring high-speed performance and scalability. This market is ideal for businesses that depend on real-time data processing, content delivery, and resilient interconnection.

Illinois: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Elite network density and a central peering point for North America.
Direct Cloud On-RampsOver 7 – as of September 2025AWS, Google Cloud (GCP), IBM Cloud, Microsoft Azure, Oracle Cloud.
Power Cost$0.09-0.11/kWh – as of September 2025A significant portion of the grid is powered by low-carbon sources.
Disaster RiskModerate (49.54) – as of September 2025Primary risks include tornados, strong winds, and winter weather.
Tax IncentivesYes – DC-specificIncludes long-term sales tax exemptions and credits for construction wages.
Sales Tax6.25% – as of July 2025State-level sales tax; local taxes may also apply.

Network & Connectivity Ecosystem

Illinois is one of the most connected markets in the world, with Chicago standing as a primary network hub for North America. The state's infrastructure supports everything from hyperscale cloud deployments to latency-sensitive financial trading.

Carrier Density & Carrier Neutrality: The state features a rich and competitive environment with over 75 unique network providers, as of September 2025. This density ensures competitive pricing and diverse routing options, primarily within carrier-neutral colocation facilities.

Direct Cloud On-Ramps: With 7 dedicated cloud on-ramps providing access to 16 global cloud regions, as of September 2025, Illinois offers exceptional multi-cloud and hybrid-cloud capabilities. Direct, private connections are available to major providers including AWS, Google Cloud (GCP), IBM Cloud, Microsoft Azure, and Oracle Cloud.

Internet Exchange Points (IXPs): Chicago is home to several major IXPs, including the Equinix Internet Exchange. These exchanges facilitate efficient, low-cost traffic peering between networks, reducing latency and improving performance for end-users throughout the Midwest.

Bare Metal: Bare metal server options are widely available from multiple providers. Companies like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and security without the overhead of virtualization.

Power Analysis

Illinois provides a favorable power environment for data center operations, combining reliable infrastructure with a growing commitment to clean energy.

Average Cost Of Power: Industrial electricity rates typically range from $0.09 to $0.11/kWh, as of September 2025. This competitive pricing, combined with a grid mix that is over 54% low-carbon, as of 2023, creates an attractive balance of cost-efficiency and sustainability.

Power Grid Reliability: The power grid, particularly within the Chicago metropolitan area, is well-engineered and highly reliable. Major data center corridors are supported by redundant substations and resilient distribution networks designed to maintain uptime for critical facilities.

Market Access, Business & Tax Climate

Illinois presents a strong business case for data center investment, driven by its central location, economic strength, and targeted financial incentives.

Proximity To Key Business Districts: Data centers in the Chicago area are strategically located to serve the city's financial district, home to the CME Group's global derivatives marketplace. This proximity is critical for financial services firms that rely on ultra-low latency for trading and data analytics.

Regional Market Reach: From its central location, an Illinois data center can effectively serve the entire Midwest region and act as a crucial mid-point for coast-to-coast network traffic. This geographic advantage minimizes latency to a large portion of the US population.

Tax Advantage For Data Centers: Illinois offers significant, long-term tax incentives specifically for data center operators and their tenants. Certified projects can receive a 20-year exemption from state and local sales taxes on equipment purchases, drastically reducing the capital expenditure for new builds and hardware refreshes.

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. The score reflects a location largely insulated from coastal and seismic threats, though it faces notable weather-related challenges.

Key risks for the state include tornados, strong wind events, riverine flooding, and severe winter weather, including ice storms and cold waves. Data center site selection and construction practices in the region are designed to mitigate these specific threats.

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