Rochelle council to vote Nov. 9 on 48-megawatt data center agreement

The Rochelle City Council will vote Nov. 9 on a development agreement with Midwest Power Investors for a proposed data center off Steward Road. The council discussed a revised version of the agreement Monday after unanimously denying the earlier proposal in April over concerns about power use, future phases, job creation and unknown risks.

City staff has worked on the agreement since early 2025. Rochelle updated its zoning in March 2025 to define and permit data centers in industrial zoning, and a public informational meeting on the project was held in November 2025. Under the current agreement, Rochelle Municipal Utilities would supply power, water, sewer and fiber services. Midwest Power Investors would pay for $6.9 million in RMU electric, water and sewer infrastructure improvements, plus roadway work on Steward Road.

The facility would be about 360,000 square feet and use 48 megawatts of power. Earlier versions of the agreement had allowed potential expansion to 100 and 150 megawatts; those expansions are no longer included. Zach La Motta of Midwest Power Investors said plans call for a closed-loop water system requiring a one-time fill of 300,000 gallons, which he said would sustain the development "for many years." He declined to name a potential end user but said his organization has a "deep roster" of interested companies.

City Engineer Sam Tesreau told the council the agreement would bring expanded infrastructure along Steward Road, RMU revenue above $1.3 million per year and utility tax fund revenue of about $400,000 annually. The city would receive a $50,000 impact fee in mid-2027 and nearly $1.6 million in property taxes per year once built. La Motta said the project would generate $10 million to $16 million in property taxes annually, totaling more than $100 million over 10 years.

RMU Superintendent of Electric Operations Blake Toliver said the utility can "adequately provide" 48 megawatts and has about 100 megawatts available for development. He said the added load would allow RMU to discuss upgrading its third line and another tie into Rochelle. RMU's largest current electrical customer uses about 10 megawatts. Rochelle's three existing data centers, two owned by Allstate and Northern Trust and one by the city, have operated for 16 years and use a combined 7 megawatts.

A petition titled "Reject plans for a data center in Rochelle, Illinois" had 1,119 signatures as of Oct. 27. No public comments against the data center were heard at Monday's meeting. Council member Tom McDermott said the proposal is about a third of the size of the original. Mayor John Bearrows said the vote will be held at the council's Nov. 9 meeting.