Data centers are booming in Chicago, but this surge in tech infrastructure is not without controversy. These large buildings filled with computers and networking equipment are essential for the digital world, but they also come with significant environmental and social costs. As the fourth-largest market for data centers in the country, Chicago is attracting tech developers seeking to expand, but the city is now grappling with the implications of this growth.
One of the main concerns is the large-scale consumption of electricity and water. Data centers require extensive cooling, and with thousands of tightly packed servers and processors, they convert nearly all the electricity they use into heat. This has led to a 12% jump in monthly electric bills for ComEd customers, as the cost of new utility infrastructure and rising wholesale energy prices are spread across all customers. The data centers currently use about 1.2 gigawatts of power, and this is forecast to increase to 4.1 gigawatts based on planned projects.
Water use is another issue. A one-gigawatt data center would use about 5 to 10 million gallons of water per day if it uses evaporative cooling, which is removed from the local supply. This has led to concerns about groundwater shortages in areas like Joliet, where a 1.8-gigawatt data center campus has been proposed. The city is constructing a $1 billion pipeline to transport treated water from Lake Michigan, highlighting the strain on local infrastructure.
The environmental impact of data centers is also a concern. Because they require massive amounts of electricity that run 24/7, they will likely use power from natural gas turbines, which release greenhouse gases. About 40% of the Chicago market's fuel mix in 2025 was natural gas, according to ComEd. This has led to calls for regulations, with Gov. JB Pritzker announcing a pause on new state tax incentives for data centers and Mayor Brandon Johnson signing an executive order placing new rules and reviews on data centers.
The social impact is also a concern. Americans largely oppose data centers in their area, and some neighbors and activists in Chicago have spoken out against them. Plans for a massive quantum computing development on the former U.S. Steel South Works site in South Chicago have sparked backlash from local leaders and residents. The Illinois Clean Jobs Coalition is pushing for the passage of the POWER Act, which would require data centers to pay for their own energy and grid infrastructure, use renewable power, disclose water use, undergo an environmental impact review by the Illinois EPA, and negotiate community benefits agreements with local residents.
In conclusion, while data centers are essential for the digital world, their growth in Chicago is not without controversy. The city is now grappling with the implications of this growth, from increased electric bills and water use to environmental and social concerns. As the tech industry continues to expand, it is crucial to find a balance between meeting the demands of the digital world and protecting the environment and the well-being of local communities.
