Data Centers in Central Illinois
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Central Illinois – Reliable and Cost-Effective Digital Hub
Central Illinois is a strong choice for businesses seeking a cost-effective and low-risk alternative to the primary Chicago data center market. The region's compelling tax incentives and stable operating environment make it ideal for enterprises focused on optimizing total cost of ownership without sacrificing reliability.
Central Illinois: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity, though not a primary international hub. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | None. Direct access requires private extension to Chicago. |
| Power Cost | ~$0.07 - $0.09/kWh | Competitive rates compared to larger, more congested US markets. |
| Disaster Risk | Moderate (49.54 NRI Score) | Low exposure to major seismic or hurricane events. |
| Tax Incentives | Yes | Significant, multi-year exemptions on taxes and utility benefits are available. |
| Sales Tax | 6.25% (Illinois), as of September 2025 | State rate; data center tax exemptions may apply. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Carrier density is limited, with 1 major provider reported in the immediate market as of September 2025. Most connectivity is aggregated through regional hubs, providing access to a broader ecosystem.
Direct Cloud On-Ramps Central Illinois has 0 direct cloud on-ramps as of September 2025. Secure, private access to all major clouds like AWS, Google Cloud, and Microsoft Azure is typically achieved via dedicated circuits to nearby Chicago, a primary interconnection hub.
Internet Exchange Points (IXPs) Public peering is not a feature of this market. Most network peering is conducted privately or through the major carrier-neutral exchanges located in Chicago.
Bare Metal Bare metal solutions are available from providers like Hivelocity and ColoCrossing, often deployed within facilities in the broader Illinois region to serve workloads requiring dedicated physical servers.
Power Analysis
Average Cost Of Power Industrial electricity rates in Central Illinois are estimated to be between ~$0.07 - $0.09/kWh as of September 2025. These competitive rates can significantly reduce operational expenditures for high-density deployments. The state's grid included over 54% low-carbon sources as of 2023, supporting sustainability goals.
Power Grid Reliability The regional power grid is well-engineered, drawing from a diverse generation mix. Data center facilities in the area typically feature redundant power feeds and multi-substation support to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts This market serves regional enterprises, academic institutions, and agricultural technology firms throughout the central part of the state. It provides a viable disaster recovery location for businesses with a primary presence in Chicago or St. Louis.
Regional Market Reach From Central Illinois, digital services can effectively reach a significant portion of the Midwest, offering low-latency connectivity to populations outside the immediate Chicago metropolitan area.
Tax Advantage For Data Centers Illinois provides substantial data center-specific tax incentives, including long-term exemptions on sales and use tax for equipment. These programs are designed to lower the upfront capital investment and ongoing operational costs for qualifying projects.
Natural Disaster Risk
Central Illinois has a moderate risk profile, with a National Risk Index score of 49.54 out of 100 as of September 2025. The risk score indicates a lower-than-average threat level compared to the nation as a whole, particularly regarding coastal or seismic events.
The primary environmental risks are severe weather events, including tornadoes, strong winds, hail, and winter storms. Other notable risks for the region include riverine flooding and drought.
