Proposal for $20bn data center outside Chicago recommended for approval by local planning commission

Joliet Planning Commission Backs $20 Billion Data Center Project, Final Vote Set for March 16 | IDC | Joliet Planning Commission Backs $20 Billion Data Center Project, Final Vote Set for March 16

March 6, 2026

A major data center development proposed for the outskirts of Chicago has cleared a key regulatory hurdle, moving the contentious $20 billion project one step closer to reality. The Joliet Planning Commission has voted to recommend approval for the massive "Joliet Technology Center," setting the stage for a decisive vote by the City Council on March 16. The project underscores the intense competition among regions to attract capital-intensive digital infrastructure, even as local communities grapple with the scale and impact of such developments.

The commission this week endorsed a series of requests crucial for the project's advancement, including the annexation and rezoning of a 795-acre parcel of land near S. Rowell Road and Bernhard Road for light industrial use. The proposed campus, to be developed by data center firm PowerHouse Data Centers, would consist of 24 two-story buildings, each offering 144,500 square feet of floor space. Construction is planned in four phases, with each phase including the build-out of a dedicated six-acre electrical substation.

In terms of scale, the development is projected to offer up to 1.8 gigawatts of power capacity upon completion, according to estimates from the applicant, PowerHouse Hillwood Holding. A key point in the project's favor, as highlighted in a staff report, is its commitment to independently secure and pay for its electricity, separating its demand from local residential or small-business grids. The report also estimates the development would generate $310 million in property taxes and $40 million in utility taxes over a 30-year period without requesting economic incentives or tax abatements. The developer, Hillwood, claims on a project advocacy website that the campus could generate approximately $2.1 billion in total local tax revenue.

Despite the promised economic benefits, the project faces significant local opposition. Reports from local outlets indicate that hundreds of residents attended the Planning Commission meeting to voice their concerns, with dozens speaking in opposition and prolonging the session for several hours. The project, first proposed in October 2025, has experienced delays leading to this month's consideration.

The impending City Council decision will determine the fate of a project that could significantly alter the data center landscape in Illinois. Joliet, situated about 40 miles southwest of Chicago and south of Aurora, is positioning itself to compete with these established major markets. PowerHouse Data Centers, a wholly-owned division of American Real Estate Partners founded in 2022, is actively expanding its national footprint, with a reported total pipeline exceeding 6 gigawatts across multiple states. Hillwood Holding is part of the Perot family of companies, entities linked to businessman and former presidential candidate Ross Perot.

Source: datacenterdynamics

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