Illinois Data Center Study Projected 121,000 New Jobs

A new report estimates $57 billion in investment for the state as officials pause local tax incentives.

Updated on Oct. 1, 2026 in Data Centers

Illinois Data Center Study Projected 121,000 New Jobs

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Do you believe the economic benefits of local data centers outweigh their environmental and energy costs?

A study from the Illinois Economic Policy Institute projects that data center investments could generate 121,000 jobs by 2035. The analysis follows a decision by Governor JB Pritzker to pause the state’s data center tax incentive program.

Why it matters

The report aims to provide policymakers with economic evidence to help them navigate resident concerns regarding data center expansion. Its findings highlight the potential for significant growth amid ongoing debates over industry regulations.

The report identifies 121,000 total projected jobs and $57 billion in total investment through 2035. Of those total roles, 2,800 are expected to be permanent, direct positions.

The players

Illinois Economic Policy Institute

This research organization conducts studies focused on the economic impact of public policies and infrastructure investments within the state.

JB Pritzker

He is the current Governor of Illinois and has taken steps to pause the state's tax incentive program for data centers.

The details

Researchers at the Illinois Economic Policy Institute analyzed anticipated construction and investment cycles over the next decade to calculate these economic figures. The study comes as lawmakers grapple with industry oversight, having failed to pass specific regulations during the spring legislative session.

Spring 2026: Lawmakers failed to pass data center regulations.
2026-2035: Projected period for data center investments and job growth.

The Tech Race

The state is balancing the rapid expansion of physical data infrastructure against the Illinois data center tax incentive program. This struggle reflects a broader trend of states reevaluating the fiscal impact of massive server facilities.

The potential for thousands of jobs could influence local labor markets and state tax revenue over the coming decade. Residents may see continued legislative debates as officials weigh these economic projections against concerns about local industry regulation.

The takeaway

While the industry promises significant economic expansion, the future of this growth remains tethered to state tax policies. Stakeholders should watch for new regulatory frameworks that may emerge to balance job creation with public interests.