With global demand for cloud computing and artificial intelligence soaring, data centers are rapidly becoming one of the nation’s most powerful engines for economic growth. The Springfield Sangamon Growth Alliance (SSGA) is positioning the region as a prime destination for these transformative projects, at a time when the world’s largest technology companies are set to invest trillions of dollars in digital infrastructure over the next decade.
Data centers, secure facilities that store and process massive amounts of digital information, enable everything from online banking and streaming to AI breakthroughs. The Midwest has quickly emerged as a hotspot for new data center developments thanks to reliable energy, central location, stable climate, and growing renewable energy resources.
“These facilities power the technology we rely on every day,” said Ryan McCrady, President & CEO of SSGA. “Modern data centers are increasingly sustainable, quieter, and designed to integrate seamlessly into communities. At the same time, they bring enormous economic benefits, such as investment in renewable energy, job creation, and a stable tax base. Simply put, they are critical to modern life and a major opportunity for Springfield and Sangamon County.”
John Duffy, an IBM z Systems Architect with Levi, Ray & Shoup, Inc. (LRS), which is internationally headquartered in Springfield, Illinois, has been involved in data center projects throughout his career, and expects to see a major boom in developments over the next decade.
“Data centers have been part of our economy for decades, but the pace of innovation in just the last five years has been extraordinary,” Duffy said. “Companies are designing facilities that use less water, generate less noise, and integrate more naturally into communities. At the same time, breakthroughs in quantum computing and AI are set to fuel unprecedented demand, positioning data centers for explosive growth in the years ahead.”
McCrady confirmed that several companies are currently evaluating Springfield and Sangamon County for new data center projects. Each development could employ more than 50 people and generate up to $50 million in annual property tax revenue, with larger hyperscale projects reaching $73 million within the first decade. Beyond the numbers, these projects have the potential to serve as long-term anchors for the local economy.
“Springfield checks many of the boxes that data center developers look for, including location, power, safety, cost-effectiveness, and workforce,” said McCrady. “But if they don’t happen in Springfield, they will happen in other Midwest cities. And the impact that has on the energy grid will be the same regardless of whether the data centers are built in Illinois or somewhere else in the region. By welcoming this growth, we ensure that our community doesn’t just carry the utility impact, but also secures the jobs, investment, tax revenue, and economic benefits that come with it.”