In October 2019, Governor J.B. Pritzker of Illinois signed a new data center sales tax incentives bill (SB 1951) into law in Illinois. Originally approved by the state’s lawmakers in June 2019, with this legislation Illinois joined 30 other states with tax incentives specifically targeted at attracting data centers as part of economic development efforts.

The Chicago region, the third largest data center market in the U.S., has long been a favored location based on its central location, abundance of fiber, relatively low power cost, and low risk of natural disasters.

With SB 1951, and in combination with no personal property tax, the Chicago region is now among the lowest Total Cost of Ownership (“TCO”) markets for data centers. This new dynamic is expected to jump-start data center development and further improve the region’s competitive position.

Whether you are expanding, just starting to consider a chicago presence, or know that this is a place you need to be, here’s what you need to know about these new market-changing incentives.