Plans for CyrusOne’s $500 million data center in Sangamon County are moving forward, with construction expected to begin this summer, after approval two months ago in a County Board vote that crossed party lines.
Meanwhile, debate on the potential Meridian Technology Park data center – 10 times more expensive and two miles west of Taylorville – is just beginning in nearby Christian County.
The Christian County Board expects to formally discuss the issue for the first time on June 16, with official votes on plans by North Carolina-based Eagle Rock Partners expected in the coming months.
Some details have emerged about what would be a multibillion-dollar data center two miles west of Taylorville during June 2 listening sessions held by Eagle Rock, a privately held company based in Charlotte, North Carolina.
Critics have alleged that the Christian County Board and Eagle Rock have been less than forthcoming about their private discussions and the potential impact of the project, which hasn’t been formally proposed to the county but which the developer says would create 500 permanent jobs.
Most of those jobs would pay about $100,000 per year and many wouldn’t require a four-year college degree, according to Eagle Rock.
Christian County Board Chair Bryan Sharp, a farmer who lives in Taylorville, denied any bias or haste by county officials. They began to talk with the developer four or five months ago, he said.
Sharp, who heads a 16-member board with 15 Republicans and one Democrat, pledged a thorough review by county officials and outside experts that the county plans to seek out for advice.
“The board’s interactions with the developer have been minimal,” Sharp told Illinois Times on June 9. “I’ve got a very committed board. … We’ve got a long road ahead of us. It’s very, very early on.”
The Christian County data center, according to information from Eagle Rock and county officials, would cost $6 billion to $8.8 billion to construct. It would be built on 475 acres of farm ground along Illinois Route 48 in Bear Creek Township and would need 1,000 megawatts of power to operate. The earliest construction would begin would be 2028, and the complex would be completed in phases over seven years.
Like the data centers planned for Sangamon and Logan counties, Eagle Rock’s data center would use “closed-loop” technology to minimize water use and recirculate water to keep computer servers cool. And Eagle Rock, like other area developers CyrusOne and Hut 8, said dampening technology would be used to restrict noise to 55 decibels, which the company said is “similar to everyday background noise in many outdoor environments.”
When asked whether the data center’s power demands would exert upward pressure on regional electric rates, Eagle Rock sidestepped the issue.
Eagle Rock said it is working with St. Louis-based Ameren, the Indiana-based operator of the regional power grid and the Auburn-based Rural Electric Convenience Cooperative “to ensure any required infrastructure upgrades will be paid for by Eagle Rock, not ratepayers.”
Eagle Rock added, “The study by the utility is currently in progress, and the work that we will pay for will add resiliency to the grid at no cost to ratepayers.”
When asked how much in new property taxes the project would generate for the Taylorville school district and other taxing bodies, Eagle Rock said, “We expect annual property taxes at full buildout to be in the tens of millions annually, though it’s far too early to give specific numbers, and be transformational for the county and its residents.”
Wendy Dulakis, 49, who lives in rural Morrisonville and about a mile west of the proposed data center site, said she doesn’t trust the company’s statements.
She criticized both Eagle Rock, county officials and the nonprofit Christian County Economic Development Corp. for a “lack of transparency” and misinformation. She and other critics have been sharing their skepticism on the Facebook page “Christian County Data Center Awareness.”
“I want independent studies that prove what they’re saying,” Dulakis said.
It’s unclear whether Christian County will require Eagle Rock to request a zoning change to allow for the project or whether the county will consider adopting a new ordinance, similar to one Sangamon County approved, that allows data centers in agricultural zones under a “conditional use permit” that can carry many restrictions and requirements.
Sangamon project will still get tax breaks
CyrusOne, which is privately held and headquartered in Dallas, plans to build four one-story, 450,000-square-foot buildings in the 13000 block of Thayer Road in rural Talkington Township, 14 miles southwest of Springfield.
The soonest the Sangamon County complex, requiring about 630 megawatts of power to operate, would be completed would be four years from now, according to the company. County officials that the complex would generate an additional $6 million in annual property taxes.
The Illinois General Assembly has debated legislation to institute more regulations and oversight on large-scale data centers that support the growth of artificial intelligence and online applications. Nothing passed in the recently concluded spring session, but legislative debate on the issue could resume in the fall veto session.
Gov. JB Pritzker has said he will use his executive authority to temporarily suspend state tax breaks for new data centers while the long-term impact of the centers’ power use on rising electric rates is evaluated.
The Sangamon County project wouldn’t be affected by the suspension and would qualify for tax breaks, according to CyrusOne spokesperson Blair Felter. According to Felter, the governor has said existing incentive agreements finalized with the state before July 1 will be honored.
“Our project meets this criteria and will not be affected by this proposal,” Felter said of the data center, which would create about 500 temporary construction jobs and 100 permanent jobs.
Logan project uncertain
And in Logan County, Hut 8 Corp., stung by a one-year moratorium enacted May 19 by the Logan County Board on consideration of new data center applications, won’t say whether the delay will prompt the publicly traded company to abandon its push for a $5 billion project in 250 acres of farm fields near Latham.
Hut 8 previously made a verbal commitment to pay Logan County schools and local governments $65 million a year in property taxes and “community benefit” payments if the project becomes a reality. For perspective, total property tax collections in Logan County by all taxing bodies amount to $55 million annually.
“We are assessing the implications for the proposed project and will determine the appropriate path forward in the coming weeks,” Gautier Lemyze-Young, spokesperson for Miami-based Hut 8, said in a statement on June 8. “We remain committed to building long-term local partnerships and delivering meaningful economic benefits.”
NO to the data center!