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Hoffman Estates, Illinois, will boost data center electricity and ambulance expenses

Aug 09, 2023 | Posted by Abdul-Rahman Oladimeji

Hoffman Estates, Illinois, hiked taxes and fees to replace two fire stations. Data centers will pay a higher electricity tax rate as part of it. The Lakewood Boulevard Microsoft data center is estimated to generate $900,000 annually. Microsoft announced a $200 million first phase for the former AT&T facility outside Chicago in early 2021. Last month, Compass Datacenters said it would buy a 2.4-million-square-foot Hoffman Estates Sears office complex.

Illinois' 2019 tax incentive scheme attracted facilities. Projects that invest $250 million and create 20 well-paid full-time employees receive ten years of sales tax redemptions on data center equipment. The new power charge will support a $25 million fire station renovation in the village. The Daily Herald reports that the tax and ambulance fees have increased. The fixed charge of $1,250 for residents and $1,500 for nonresidents will rise to $3,394, plus $20 each mile to the hospital. As a resident, any fees not covered by insurance will be waived. Emergency medical care without transport will also cost $250.

The village expects to raise $840,000 annually. The fire department now charges disabled persons for non-fire-related duties,  which is thought to be a way to discourage use rather than raise revenue.