Madison County lawmakers have barred data center developers from seeking certain tax incentives.
Members of the county board voted Wednesday to exclude data centers from property tax incentives through Illinois' enterprise zone program, which aims to stimulate economic growth in struggling parts of the state.
Projects that get the incentives receive 10-year property tax abatements that then phase out. Granite City, Madison and Venice currently have projects in the program.
"There's no need to incentivize a data center," said board Chairman Chris Slusser. "They're (developers) eager to build them."
The board amended rules for the Southwestern Madison County Enterprise zone to exclude data centers. Slusser said the county hopes to pursue similar restrictions in nearby zones.
The Madison County discovery zone includes Collinsville, Glen Carbon, Maryville, Troy, St. Jacob and Highland.
The decision comes as several developers eye the Metro East for data center development. Currently, developers are looking at Granite City and Pontoon Beach.
Just this week, the developer behind a planned data center in Midtown St. Louis announced plans to build one at the site of the former Alton Steel mill. The developer, TerraWatt, said it wouldn't seek any tax incentives.
"We would not want to do a property tax exemption for a data center," Slusser said. "I would not support a data center project that offers a property tax incentive."
The rules do not prohibit individual municipalities from providing their own tax incentives for data center projects.
Residents in Chouteau, Granite City, Nameoki and Venice townships are set to vote on advisory measures in November, asking whether data center development should be allowed in their communities.
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