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Illinois has become a significant destination for colocation services in the United States. With over 222 data center facilities, the state offers a combination of strategic location, robust connectivity, and supportive economic policies. ​

Central Location and Connectivity

Illinois sits at the geographic center of the U.S., providing low-latency connections to major markets like New York, Dallas, and Atlanta. 

Chicago serves as a critical interconnection hub supported by a dense fiber-optic network and a strong presence of network providers. The region’s infrastructure allows data to move efficiently between East and West Coasts with minimal delay.

Key Facilities and Interconnection Points

The 350 East Cermak facility in downtown Chicago stands out as one of the most interconnected multi-tenant data centers in the Midwest. Operated by Digital Realty, the building spans over 1.1 million square feet and hosts more than 70 network providers. 

It also houses Equinix’s CH1 data center, offering carrier-neutral connectivity and access to multiple cloud and service providers. The facility’s meet-me room enables direct, efficient data exchange between telecommunications companies, further improving performance and redundancy.

Network Strength

Chicago’s historic role as a telecommunications hub provides strong fiber backbones and numerous exchange points. Experts often describe the city’s connectivity as “world-class,” supported by an unusually dense carrier presence. Chicago’s location allows a single network hop to reach about 50 million people across Illinois and neighboring states.

Disaster Risk Profile

Illinois has a low risk of large-scale natural disasters. It is largely free from hurricanes, coastal flooding, and major earthquakes. Although the Midwest can experience tornadoes, Chicago’s northern location sees relatively few severe tornado hits. Modern data center designs in the area are built to handle these risks, making it a safer location for critical infrastructure.

Operational Costs and Climate Benefits

Illinois offers competitive operational costs. Commercial electricity rates in Illinois average around $0.06 per kWh (ComEd rate), lower than the national average. Chicago’s climate also supports energy efficiency: about 300 days per year are cool enough to allow data centers to use outside air for cooling instead of energy-intensive chillers, significantly reducing energy consumption and costs.

Economic and Tax Incentives 

Illinois provides a range of tax incentives to encourage data center development and operations within the state.​

Sales and Use Tax Exemptions

The Illinois Data Centers Investment Program offers exemptions from various state and local taxes for qualifying data centers. This includes exemptions from the Retailers’ Occupation Tax Act, the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and all locally-imposed retailers’ occupation taxes administered and collected by the Department of Revenue. The program also provides a tax credit of 20% of wages paid for construction workers for projects located in underserved areas. ​

Eligibility Criteria

To qualify for these incentives, data centers must meet specific requirements:​

• Capital Investment: A minimum of $250 million in capital investment over a 60-month period.
• Job Creation: Creation of at least 20 new full-time or full-time equivalent jobs associated with the operation or maintenance of the data center.
• Wage Standards: Jobs must have total compensation equal to or exceeding 120% of the average wage paid to full-time employees in the county where the data center is located.
• Sustainability: Within two years of the project being placed in service, the data center must demonstrate carbon neutrality or attain certification under one or more green building standards such as LEED, ENERGY STAR, or equivalent programs.

Construction Employment Tax Credit

For projects located in underserved areas, the program provides a tax credit equal to 20% of the wages paid to construction workers on the project. Underserved areas are defined based on criteria such as poverty rates, participation in free lunch programs, SNAP benefits, or unemployment rates exceeding 120% of the national average.

Certification and Compliance

Qualifying data centers must apply to the Illinois Department of Commerce and Economic Opportunity (DCEO) for certification. Upon approval, data centers enter into a memorandum of understanding (MOU) with the DCEO, outlining investment details, job creation targets, timelines, and compliance requirements. Tax exemption certificates are issued in five-year increments, renewable for up to 20 years, subject to continued compliance. 

These incentives have attracted significant investments from major tech companies, contributing to the growth of Illinois as a data center hub.

Climate and Energy Efficiency

Illinois’s climate and energy infrastructure support energy-efficient data center operations. The state’s energy infrastructure, including access to renewable energy sources, aligns with sustainability goals for data center operators and clients. Data centers in Illinois are increasingly adopting solar power to reduce costs and environmental impact.​

Digital Realty has committed to matching its 11 Illinois data centers with 100% renewable energy starting in 2025, reinforcing its sustainability objectives . Similarly, Microsoft has entered into a virtual power purchase agreement with EDP Renewables to procure approximately 389 MW of solar energy from projects in Illinois and Texas, with two Illinois-based solar farms commencing operations in late 2024.

Donato Solar, in collaboration with Gail Technology, is advancing three solar projects totaling 9.24 MW in central Illinois, aimed at powering data centers. These installations are designed to generate surplus energy during daylight hours, contributing excess capacity to the local grid.​

The Climate and Equitable Jobs Act (CEJA) of 2021 has bolstered Illinois’s renewable energy landscape, offering incentives such as Solar Renewable Energy Credits (SRECs), net metering, and property tax benefits. These measures have facilitated solar adoption among data centers, exemplified by the SpringPath Data Center in Aurora, which implemented a 2.5 MW solar array in 2019.

Looking ahead, Illinois’s commitment to renewable energy and supportive policies position it as a favorable environment for sustainable data center operations.

We Can Help You Find the Best Colocation Providers in Illinois for FREE

Leading Colocation Providers in Illinois

Let’s check out some of the leading data center providers in Illinois: 

1. Equinix – East Cermak Road

Equinix operates three interconnected data centers CH1, CH2, and CH4, within the iconic 350 East Cermak Road facility in Chicago. Each occupies a distinct floor and offers a range of colocation and interconnection services.

Equinix CH1 

• Total Space: 166,084 sq ft
• Colocation Space: 50,992 sq ft
• Power Capacity: 6.0 MW
• Power Configuration: N+1 UPS, N+2 generators
• Security: Biometric access, CCTV, mantrap entry
• Certifications: SOC 1 Type II, SOC 2 Type II, PCI DSS, ISO 27001 (GCG)

Equinix CH2 

• Total Space: 110,618 sq ft
  Colocation Space: 58,852 sq ft
• Power Capacity: 8.0 MW
• Power Configuration: N+1 UPS, N+2 generators
• Security: Biometric access, CCTV, mantrap entry
• Certifications: SOC 1 Type II, SOC 2 Type II, PCI DSS, ISO 27001 (Data Centers)

Equinix CH4 

• Total Space: 20,225 sq ft
• Colocation Space: 19,169 sq ft
• Power Capacity: 8.0 MW
• Power Configuration: N+1 UPS, N+2 generators
• Security: Biometric access, CCTV, mantrap entry
• Certifications: SOC 1 Type II, SOC 2 Type II, PCI DSS, ISO 27001 (Inflect)

Digital Realty ORD 10 – 350 E. Cermak 

Digital Realty owns and operates the entire 350 E. Cermak property under the facility name ORD10. This site is the most interconnected multi-tenant data center in the Midwest, serving hyperscale customers, enterprises, and telecom carriers.

• Total Space: Over 1.1 million sq ft
• Power: 100+ MW utility power capacity
• Network: 70+ network providers with rich carrier-neutral interconnectivity
• Services: Suites, cages, cabinets, footprints, and remote hands
• Infrastructure: Heavy-duty construction (originally built for printing press equipment), extensive electrical and HVAC capacity
• Location: Near South Loop, close to the financial district, transit hubs, and airports

CoreSite CH2 – Chicago, Illinois

CoreSite’s CH2 facility, located at 1432 S. Clinton Street in downtown Chicago, is a purpose-built data center offering 169,000 square feet of space and 18 MW of critical power capacity. 

The facility supports high-density deployments and provides access to a variety of network and cloud providers, including AWS, Microsoft Azure, and Google Cloud. 

CH2 is certified under standards such as SOC 1 Type 2, SOC 2 Type 2, ISO 27001, and PCI DSS, ensuring compliance for various industries.

Facility Overview

• Location: 1432 S. Clinton Street, Chicago, IL 60607
• Total Space: 169,000 sq ft
• Power Capacity: 18 MW
• Design: Four-story, purpose-built structure
• Construction Timeline: Groundbreaking in March 2019; operational since June 2020 

• Redundancy: N+1 UPS systems, N+2 generators, N+1 cooling configuration
• Utility Feeds: Dual feeds from ComEd’s high-reliability downtown electrical grid
• Cooling System: Designed for high efficiency with sustainability-focused features
• Fiber Connectivity: Three diverse fiber entry routes and high-count dark fiber connections to CoreSite’s CH1 facility 

NTT CH1 Data Center – Itasca, Illinois

NTT’s CH1 data center, located at 255 Pierce Road in Itasca, Illinois, is a purpose-built facility designed to support high-density deployments and mission-critical applications. 

As the inaugural building on NTT’s planned 200+ MW Chicago campus, CH1 offers 36 MW of critical IT load across 126,000 square feet of data floor space. 

The facility features advanced cooling technologies, energy-efficient designs, and robust security measures to ensure reliable and secure operations.

Facility Overview

• Location: 255 Pierce Road, Itasca, IL 60143
• Data Floor Space: 126,000 sq ft
• Critical IT Load: 36 MW
• Cooling System: Closed-loop chilled water system with fan coil wall design and hot aisle containment
• Redundancy: N+1 distributed redundancy for power and cooling systems
• Connectivity: Carrier-neutral with three diverse fiber entry points and two Carrier-Meet-Me-Rooms
• Security: 24/7 on-site security personnel, biometric scanners, over 100 real-time security feeds, and CCTV surveillance
• Certifications: SOC 1 Type II, SOC 2 Type II, ISO 27001, ISO 50001, PCI DSS, NIST 800-53 High, HIPAA (Inflect) (datacentermap)

Compass Datacenters – Hoffman Estates, Illinois (In Progress) 

Compass Datacenters is developing a hyperscale data center campus on the 197-acre former Sears headquarters site at 3333 Beverly Road in Hoffman Estates, Illinois. The project includes plans for five hyperscale data centers, with a total investment of approximately $10 billion.

Facility Overview

• Location: 3333 Beverly Road, Hoffman Estates, IL
• Site Size: 197 acres
• Planned Facilities: Five hyperscale data centers
• Total Investment: Approximately $10 billion
• Construction Timeline: Demolition began in mid-2024; construction is expected to continue into 2025
• Job Creation: Approximately 1,000 local jobs during construction (Baxtel)

Final Thoughts 

Illinois’s combination of strategic location, robust connectivity, favorable tax policies, and energy-efficient climate positions it as an attractive destination for colocation services. Businesses seeking scalable and sustainable infrastructure solutions can find a range of options among the state’s leading data center providers.