Data Centers in Central Illinois
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Central Illinois – Strategic Midwest IT Hub
Executive Summary
Central Illinois provides a compelling alternative to the high-cost Chicago market, making it an excellent location for disaster recovery and secondary production sites. Businesses benefit from strong state-level tax incentives and lower operational costs while maintaining reliable connectivity to the primary Midwest interconnection hubs. This market is ideal for organizations prioritizing value and resilience for their infrastructure.
Central Illinois: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, with primary access to national networks through Chicago. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest cloud hub is Chicago; access via private network extension is common. |
| Power Cost | $0.07–$0.09/kWh | Power mix is 54.89% low-carbon, as of 2023. |
| Disaster Risk | Moderate (49.54 Score) | Primary risks include severe weather like tornadoes, though overall risk is manageable. |
| Tax Incentives | Yes | Multiple DC-specific incentives available, including long-term tax exemptions and credits. |
| Sales Tax | 6.25% State Sales Tax | As of Midyear 2025. |
Network & Connectivity Ecosystem
Central Illinois offers a practical connectivity landscape for enterprises that do not require the dense, top-tier options of a major market like Chicago.
Carrier Density & Carrier Neutrality The market contains a solid mix of regional and national providers, with at least one carrier-neutral facility available as of September 2025. This ensures sufficient options for redundancy and competitive pricing for transit and transport services.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Central Illinois as of September 2025. All major public clouds, including AWS, Google Cloud (GCP), and Microsoft Azure, are accessed via network connections to provider POPs in Chicago. Private network extensions via wave or PNI are the standard method for establishing dedicated cloud access.
Internet Exchange Points (IXPs) Public peering is limited in this market. Most network peering for Central Illinois data centers is conducted privately or through exchange points located in Chicago.
Bare Metal Bare metal server capacity is available from providers in the region. Options from providers like ColoCrossing can be deployed to meet specific compute requirements without the overhead of virtualization.
Power Analysis
Average Cost Of Power Industrial power costs in Central Illinois are competitive, estimated between $0.07 and $0.09 per kWh as of September 2025. These favorable rates can significantly reduce total operating expenses compared to more congested primary markets. Illinois also features a grid with over 54% low-carbon electricity generation as of 2023.
Power Grid Reliability The power grid serving the region is well-engineered and stable, with infrastructure capable of supporting the uptime requirements of modern data center operations. Facilities typically offer redundant power feeds from separate substations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Central Illinois are positioned to serve key regional economic centers, including the state capital of Springfield, Peoria, and the Champaign-Urbana area. This makes them ideal for supporting government, healthcare, education, and agricultural technology sectors.
Regional Market Reach The market provides effective, low-latency connectivity to the broader Midwest. It is an excellent choice for a secondary or disaster recovery site for workloads primarily housed in Chicago, St. Louis, or Indianapolis.
Tax Advantage For Data Centers Illinois provides substantial financial incentives for data center development and operations. Certified data centers can receive a 20-year exemption on state and local sales taxes on equipment, as well as an income tax credit for construction wages.
Natural Disaster Risk
Central Illinois has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 49.54 as of September 2025. The risk is primarily driven by seasonal weather events rather than catastrophic geological threats.
Key risks include tornadoes, strong wind, riverine flooding, ice storms, and winter weather. The absence of major seismic or hurricane risk makes the region a stable location for critical infrastructure when facilities are properly engineered to mitigate severe weather.
