Data Centers in Central Illinois
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Central Illinois – Stable Midwest Digital Anchor
Central Illinois offers a compelling colocation market for enterprises requiring a stable, cost-effective Midwest presence. It serves as a strategic location for secondary disaster recovery sites and for organizations serving regional commercial and agricultural centers, delivering reliable infrastructure without the higher costs of primary data center hubs.
Central Illinois: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity, though not a primary national hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via Chicago, offering private extension options for dedicated cloud connections. |
| Power Cost | $0.08-0.10/kWh (est.) | 54.89% low-carbon mix as of 2023. |
| Disaster Risk | Moderate (49.54 Score) | Primarily atmospheric and seismic risks; low coastal or hurricane exposure. |
| Tax Incentives | Yes | Multiple data center-specific exemptions and tax credits are available. |
| Sales Tax | 6.25% (Illinois) – as of 2025 | State-level sales tax applicable to qualifying purchases. |
Network & Connectivity Ecosystem
Central Illinois provides reliable connectivity, leveraging its proximity to the primary North American hub of Chicago.
Carrier Density & Carrier Neutrality The market is served by over 1 national and regional carrier, as of September 2025. Facilities are typically carrier-neutral, offering a choice of providers to ensure competitive pricing and network resilience.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Central Illinois, as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, through dedicated network connections to data centers in Chicago.
Internet Exchange Points (IXPs) Public peering is limited in Central Illinois. Most interconnection occurs through private peering arrangements or by connecting to major exchanges in Chicago, which facilitates efficient traffic exchange across the Midwest.
Bare Metal Bare metal server options are available, providing dedicated physical compute for performance-sensitive applications. Providers like ColoCrossing offer solutions in this market.
Power Analysis
Illinois offers a stable and increasingly green power grid, making it an attractive location for data center operations.
Average Cost Of Power Industrial electricity costs are estimated to be between $0.08 and $0.10/kWh, as of September 2025. This competitive pricing helps lower the total cost of ownership for high-density deployments. The state's energy mix included 54.89% low-carbon sources as of 2023.
Power Grid Reliability The power grid supporting Central Illinois is well-engineered and reliable. Data centers in the region typically have access to redundant power feeds from multiple substations, ensuring high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
The state of Illinois provides a favorable environment for data center investment and operations.
Proximity To Key Business Districts Data centers in Central Illinois are positioned to serve key regional economic centers, including Peoria, Springfield, and Champaign-Urbana. This proximity is ideal for supporting local government, healthcare, education, and agricultural technology sectors.
Regional Market Reach From Central Illinois, digital services can effectively reach a large population across the Midwest. The location provides a good balance of latency and cost for reaching end-users and business partners in Illinois, Indiana, Missouri, and Iowa.
Tax Advantage For Data Centers Illinois offers significant tax incentives specifically for data center development and operation. These advantages include exemptions on equipment investments and income tax credits, which substantially reduce the financial burden of building and running a facility.
Natural Disaster Risk
Central Illinois has a moderate natural disaster risk profile, with a FEMA NRI Score of 49.54, as of September 2025. The location is insulated from major coastal threats like hurricanes and tsunamis.
The primary risks to consider are atmospheric and geologic. Key hazards include severe wind, tornado, riverine flooding, earthquake, and winter weather. Facility design and operational planning should account for these regional possibilities.
