Mount Prospect utility tax hike targets data center complex

With construction of a $2.5 billion data center underway on the former United Airlines world headquarters property in Mount Prospect, the village is looking to take advantage of the financial windfall through a targeted hike in its electric utility tax.

Officials say the increase will be imposed only on users that consume 1 million kilowatt-hours of electricity per month. No such users exist currently in the village. The average family uses 800 to 900 kilowatt-hours per month, while a small business consumes 5,000 to 15,000 monthly, officials said.

However, when the CloudHQ data center is fully operation, it is expected to exceed that 1 million threshold. The Washington, D.C.-based company broke ground in August on a project that will include three 566,760-square-foot data centers at 1200 E. Algonquin Road and 1200 Dempster St., as well as a new ComEd substation to power them.

The first building is expected to be complete by 2024, with the remainder of the work finished by 2027.

Mount Prospect Finance Director Amit Thakkar said the amount CloudHQ ultimately pays will depend on its energy efficiency. But the village could take in $2 million or $3 million per year, he said.

Currently, the village collects about $1.1 million in electric utility taxes annually.

Village trustees passed the increase at Tuesday's board meeting without discussion.