Joliet Approves $20 Billion, 1.8GW Data Center Campus After Contentious Review
March 24, 2026
The Joliet City Council has granted final approval for a massive $20 billion data center development, positioning the Chicago suburb to become a major new hub in the competitive Illinois data center market. The decision underscores the intense demand for large-scale digital infrastructure and the complex local negotiations that accompany such projects.
On March 19, the council voted to annex the land necessary for the proposed Joliet Technology Center, a 795-acre campus to be developed by PowerHouse Data Centers in partnership with Hillwood Holding, part of the Perot family of companies. The approval followed a delayed public hearing on March 16, which reportedly lasted six hours and forced officials to postpone their final decision.
The campus, planned for a parcel near S. Rowell and Bernhard Roads, will be constructed in four phases. Each phase will include the building of six data center structures, each a two-story building spanning 144,500 square feet, alongside a dedicated six-acre electrical substation. Upon full build-out, the facility is designed to offer up to 1.8 gigawatts of critical IT capacity, a significant addition to the regional grid.
The project has sparked significant local debate. While supported by building unions anticipating substantial construction employment, it has faced opposition from some residents concerned about impacts on utility costs and community character, with some alleging undue influence in the approval process. Proponents highlight the economic benefits: a staff report projects the development will generate $310 million in property taxes and $40 million in utility taxes over three decades without requesting economic incentives. A promotional site for the project, ‘Yes to Joliet Jobs,’ claims an even broader economic impact, estimating approximately $2.1 billion in total local tax revenue.
First proposed in October 2025, the project experienced several delays before this month's pivotal vote. PowerHouse Data Centers, a division of American Real Estate Partners founded in 2022, will lead development. The company, with an existing pipeline exceeding 6GW across several states, is expanding its footprint into a strategic location roughly 40 miles southwest of Chicago's established data center clusters.
Source: datacenterdynamics
