The Future of Data Centers in Henry County, Part 3

What Henry County Needs to Decide

For the past two weeks, we've explored why data centers are being built at an unprecedented pace and examined the potential benefits and concerns they bring to the communities that host them.

Now the focus shifts to Henry County.

In June, the Henry County Board approved a 12-month moratorium on new data center projects. The decision wasn't intended to stop development permanently. Instead, county leaders chose to pause, gather information, and determine whether Henry County's current regulations are sufficient—or whether new rules should be in place before a proposal ever reaches the County Board.

A Pause to Plan

Data centers are unlike most developments the county has considered in the past.

A new subdivision, manufacturing facility, or retail business each presents its own challenges. But modern data centers bring unique questions involving electricity, water, technology infrastructure, emergency response, and long-term land use.

Rather than waiting until an application arrives, county officials have opted to establish expectations in advance.

The goal is simple: create a fair, transparent process that protects the public while giving developers a clear understanding of the county's requirements.

Where Should They Be Allowed?

One of the first decisions the county may need to make is where data centers could be built. Space needs range from 15-30 acres for a small facility, 30-150 acres for an average data center, and up to 150-500+ acres for “hyperscale” centers.

Throughout the Henry County moratorium, the board will be considering questions like:

  • Should they be limited to industrially zoned property?

  • Should they be located near existing electrical, utility, or stormwater infrastructure?

  • Should productive farmland receive additional protections?

  • Should minimum setbacks be required from homes, schools, parks, or other sensitive areas? Will any additional landscaping/ screening be required?

  • Are safeguards in place to protect farmland and our rural character?

The answers will shape not only whether a project is approved, but where one could realistically be proposed.

How Much Power Is Too Much?

Modern data centers consume large amounts of power, and future facilities are expected to require even more as technology needs continues to expand.

Issues that are not properly addressed upfront can cause increased electricity bills:

  • need for new substations, transmission lines, or equipment

  • higher capacity requirements

  • stranded (abandoned) projects

  • increased wholesale prices due to increased demand

  • local grid updates

Addressing these issues prior to approval may involve:

  • an infrastructure payment agreement

  • a utility cost-impact study

  • separate utility rates so the data center pays its fair share (also known as a separate large-load rate treatment)

  • exit and stranded cost protections

  • agreed-upon expansion triggers

  • public reporting and accountability measures

  • third-party regulator reviews

While utilities ultimately determine whether power can be supplied, the county may require developers to document those plans before a project moves forward.

How Will Water Be Managed?

Not every data center uses the same cooling technology. Some rely primarily on outside air. Others use water-based cooling systems. Still others use hybrid designs that reduce water consumption while maintaining efficient operation. Water consumption ranges from as much as 5 million gallons daily to nearly zero, depending on the cooling system and the size of the facility.

Before considering a project, the county may want developers to identify:

  • Acceptable cooling systems

  • Estimated daily water use

  • The source of the water

  • Potential impacts on nearby water systems

  • Plans for drought conditions

  • Wastewater management

  • Maximum annual withdrawal and consumption caps

  • Water usage and monitoring measures

What About Noise?

Unlike factories, data centers typically don't produce smoke or heavy truck traffic. They do, however, operate 24 hours a day. Cooling equipment, transformers, ventilation systems, and backup generators all create sound.

Many communities establish measurable noise standards instead of relying on subjective descriptions like "too loud."

Possible standards could address:

  • Maximum daytime noise

  • Maximum nighttime noise

  • Property-line measurements

  • Generator testing schedules

  • Required sound barriers or landscaping

  • Quieter equipment

  • Noise monitoring, complaint, and response plans

Clear standards provide certainty for both residents and developers.

Emergency Preparedness

Data centers contain sophisticated electrical equipment, backup power systems, batteries, and fire suppression systems.

Although these facilities are designed with multiple layers of safety, local emergency responders still need to have the tools and training to respond appropriately to potential emergencies.

County officials may ask:

  • What specialized training would responders need?

  • Would additional equipment be necessary?

  • How would emergency access be maintained?

  • What information should fire departments receive before construction?

These discussions often occur long before a building permit is issued.

Roads and Infrastructure

A project of this size could affect roads, utilities, and other public infrastructure. Construction may require heavy equipment and frequent deliveries. Electrical service may require upgrades. Fiber-optic connections may need expansion.

One important question is who pays for those improvements. Many communities negotiate development agreements that clearly assign responsibility before construction begins.

County officials may formalize expectations regarding:

  • road repairs for wear and tear caused by construction traffic

  • upgrades to roads, bridges, and intersections

  • traffic control, signage, and safety measures

  • dust control and cleanup

  • construction hours

Air Pollution

Data centers rely on backup generators to keep critical systems running during outages. When these generators run or are tested, they emit pollution, including:

  • nitrogen oxides

  • particulate matter

  • carbon monoxide

  • volatile organic compounds (VOCs)

  • carbon dioxide

  • other toxins including formaldehyde, benzene, and others

Limiting those pollutants or outlining expectations requires policies outlining:

  • generator testing schedules

  • generator maintenance runs

  • fuel used in generators

  • location relative to prevailing winds and nearby homes, schools, businesses

  • stack height and dispersion modeling

Data center generators are regulated as stationery engines under the Clean Air Act.

Weighing the Choice

Supporters often point to the economic impact of data centers, while opponents often question whether those benefits justify the project's size and infrastructure needs.

Rather than relying on estimates or assumptions, the moratorium allows Henry County the opportunity to evaluate measurable information, including:

  • Expected property tax revenue

  • Potential tax incentives

  • Construction investment

  • Temporary construction jobs

  • Permanent employment

  • Local purchasing commitments

  • Infrastructure contributions

  • Long-term maintenance obligations

Looking beyond the headline investment number allows decision-makers to understand a project's overall impact on the community.

Should Henry County Create New Rules?

One of the biggest questions during the moratorium is whether the county's existing zoning regulations are enough.

Many communities have concluded that data centers deserve their own standards because of their unique infrastructure needs.

A future ordinance could address issues such as:

  • Appropriate zoning districts

  • Minimum lot size

  • Building height

  • Setbacks

  • Landscaping and screening

  • Noise limits

  • Water reporting

  • Utility documentation

  • Emergency response planning

  • Road-use agreements

  • Environmental requirements

  • Financial guarantees

  • Decommissioning plans if a facility eventually closes

The purpose of those standards wouldn't necessarily be to encourage or discourage development. Their purpose would be to ensure every proposal is evaluated using clear, consistent, and transparent criteria.

Looking Beyond One Project

The decisions Henry County makes during this moratorium could shape how the county evaluates technology-related development for decades.

Strong regulations provide clarity for residents, developers, and elected officials alike. Poorly defined regulations can create uncertainty for everyone involved.

The coming months give Henry County an opportunity to ask difficult questions before difficult decisions have to be made.

Next in the series: How would a data center proposal actually move from concept to construction? In the final installment, we'll walk through the decision-making process, the roles of local, state, and utility partners, and how residents can participate as plans take shape.

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Stumphy’s Plans New Location as Restaurant Prepares to Leave Sugar Maple

Stumphy’s Restaurant & Bar is preparing for a move, with plans to relocate from its current location at Sugar Maple Golf Club to a new space.

The restaurant hopes to have a new location selected by the end of this week. The Sugar Maple location will remain open until October.

The move does not mean Sugar Maple Golf Club is closing. The golf course will remain open and continue operating.

Stumphy’s currently employs 18 staff members, and minimizing the amount of time between locations is a priority as plans move forward.

A specific new location has not yet been announced. Though, The Current has confirmed that they will not be relocating within Geneseo.

The planned relocation marks a new chapter for Stumphy’s, which has operated from the clubhouse at Sugar Maple Golf Club outside Geneseo since April 2026. Once a location is finalized, additional information about the restaurant’s transition and reopening will be announced.

The Current will update this story as additional information becomes available.

A Closer Look at Geneseo Schools’ FY27 Budget

The Geneseo Community Unit School District 228's proposed FY27 budget outlines how much money the district expects to receive, spend and have remaining during the 2026-27 fiscal year.

The district's finances are divided among several funds. Each fund is used for different types of expenses, such as education, transportation, building operations and debt payments.

The Education Fund is the district's largest operating fund. It pays for much of the day-to-day operation of the schools, including salaries, employee benefits, instructional programs, supplies and special-education expenses.

For FY27, the district is budgeting approximately $24.56 million in direct Education Fund revenue and approximately $29.14 million in expenditures.

The budget also includes a $3 million transfer from the Working Cash Fund to the Education Fund.

After revenues, expenditures and the transfer are included, the Education Fund is projected to decrease by approximately $1.57 million during FY27.

The Education Fund begins the year with a projected fund balance of approximately $6.44 million and is projected to end the year at approximately $4.87 million.

Where Education Fund revenue comes from

The district expects approximately $16.18 million from local sources.

Approximately $6.68 million is expected from the State of Illinois. That includes approximately $6.15 million in Evidence-Based Funding.

Federal revenue is budgeted at approximately $1.70 million.

Together, those sources account for approximately $24.56 million in direct Education Fund revenue.

Salaries and benefits

Salaries are the largest expenditure category in the district's budget.

Across all district funds, approximately $18.46 million is budgeted for salaries.

Approximately $5.90 million is budgeted for employee benefits.

Within the Education Fund, approximately $16.53 million is budgeted for salaries and approximately $4.72 million for employee benefits.

The Education Fund also includes approximately $1.28 million for purchased services and approximately $1.99 million for supplies and materials.

The budget includes approximately $4 million for special-education programs and tuition. Other special-education expenses, including salaries, benefits and transportation, are included elsewhere in the budget.

Transportation Fund

The district expects approximately $2.51 million in direct Transportation Fund revenue and approximately $2.81 million in expenditures.

The budget includes a $300,000 transfer from the Working Cash Fund into the Transportation Fund.

After the transfer and other budgeted activity, the Transportation Fund is projected to end FY27 with approximately $896,608, compared with a beginning balance of approximately $893,968.

The district expects approximately $1.37 million in state transportation funding, including approximately $1.18 million for regular and vocational transportation and approximately $185,000 for special-education transportation.

Operations and Maintenance

The Operations and Maintenance Fund covers expenses associated with district buildings and facilities.

The fund begins FY27 with approximately $2.56 million.

The district projects approximately $2.79 million in direct revenue and approximately $2.74 million in direct expenditures.

The fund is projected to end FY27 with approximately $2.66 million after other budgeted sources are included.

Working Cash Fund

The Working Cash Fund begins FY27 with approximately $5.29 million.

The district's budget calls for transferring a total of $3.3 million from Working Cash during FY27.

Of that amount, $3 million is budgeted for transfer to the Education Fund and $300,000 to the Transportation Fund.

The Working Cash Fund is also projected to receive approximately $310,000 during FY27.

Its projected ending balance is approximately $2.30 million.

Other district funds

The district budget also includes several other funds with specific purposes.

These include the Municipal Retirement/Social Security Fund, Debt Service Fund, Capital Projects Fund, Tort Fund and Fire Prevention and Safety Fund.

Money budgeted within those funds is used for expenses associated with their respective purposes and is reported separately from the Education, Transportation and Operations and Maintenance funds.

Fund balance and cash balance

The state budget form separately reports projected fund balances and projected cash balances.

The Education Fund, excluding student activity funds, is projected to end FY27 with a fund balance of approximately $4.87 million.

Its projected cash balance is approximately $3.79 million.

Approximately $400,000 in student activity funds brings the projected Education Fund cash total, including those funds, to approximately $4.19 million.

The FY27 budget

The FY27 budget is a financial plan for the fiscal year. The figures represent projected revenues, expenditures, transfers and balances rather than final FY27 results.

The School Board will consider the budget as part of its annual budget process before adopting a final FY27 budget.

The Future of Data Centers in Henry County, Part 2

The Promise and the Questions: Weighing the Benefits and Concerns

In Part 1 of this series, we explored what data centers are, why the demand for them has grown so rapidly, and how artificial intelligence is driving a new wave of construction across the country.

Now comes the question many Henry County residents are asking:

If a data center were proposed here, what would it mean for our community?

The answer isn't simple.

Supporters see opportunities for economic growth, infrastructure investment, and long-term tax revenue. Critics raise questions about electricity demand, land use, water consumption, and whether the benefits outweigh the costs.

Like many major development projects, data centers come with both potential advantages and legitimate concerns.

The Potential Benefits

Construction Jobs

Building a large data center is a significant construction project that can take years to complete.

During construction, hundreds of workers may be involved, including electricians, plumbers, heavy equipment operators, concrete crews, steel workers, HVAC specialists, and other skilled trades. Hotels, restaurants, fuel suppliers, and other local businesses may also see increased activity while construction is underway.

Increased Property Tax Revenue

Data centers are expensive facilities, often representing hundreds of millions—or even billions—of dollars in private investment.

Depending on how a project is structured and whether tax incentives are involved, a completed facility can add substantial value to the local property tax base. Those revenues may help support schools, local governments, and other taxing districts.

The amount ultimately received depends on local agreements, assessments, and state law.

Infrastructure Improvements

Large developments often require improvements to roads, electrical infrastructure, fiber-optic networks, and utility connections.

In some cases, those improvements can benefit other businesses or future development. In others, the infrastructure is built primarily to serve the facility itself.

Economic Diversification

Henry County has long been known for its strong agricultural and manufacturing roots.

Some local leaders see technology investment as one way to diversify the economy while continuing to support existing industries.

Others question whether that diversification provides enough long-term local benefit.

Potential Concerns

Electricity Use

Modern data centers require large amounts of power to operate thousands of servers around the clock while also running sophisticated cooling systems.

For communities considering a project, questions often include:

  • Can the existing electrical grid support the additional demand?

  • Will new transmission lines be required?

  • Who pays for infrastructure upgrades?

  • Could additional demand affect future industrial development?

These are questions utility providers and regulators evaluate before projects move forward.

water usage

Not all data centers use the same cooling systems. Some rely heavily on air cooling, while others use water-based systems. As technology evolves, companies continue developing methods to reduce water consumption.

Because every facility is different, projected water use depends on the specific design and location of the project.

Land Use

Data centers typically require large sites with room for future expansion.

For rural communities, that raises questions about farmland preservation, neighboring property uses, building size, visual impacts, and how such developments fit within existing zoning plans.

These considerations vary widely depending on the location.

Noise

Although data centers do not generate the traffic or emissions associated with heavy manufacturing, they are not silent.

Cooling equipment, ventilation systems, and backup generators do produce noise.

Modern facilities often include sound-reduction measures, but noise remains an issue communities frequently evaluate during the planning process.

Emergency Planning

Local governments also consider emergency preparedness.

Questions may include:

  • How would emergency responders access the site?

  • What fire suppression systems are used?

  • How are backup fuel systems managed?

  • What training would local responders need?

These issues are among the reasons many communities spend months—or even years—reviewing proposals before approving construction.

A Case Study

The Meta data center in DeKalb offers a real-world Illinois example for examining both the potential benefits and concerns associated with a large-scale data center after development. Rather than treating DeKalb as evidence either for or against data centers, the following case study looks at what can actually be documented: the scale of investment and employment, state tax incentives, taxes received by local taxing bodies, and concerns raised about water, electricity, noise, infrastructure and long-term impacts. Some outcomes can now be measured, while others remain questions or potential impacts that require continued monitoring.

There Isn't One Universal Answer

Across the country, some communities have welcomed data centers, believing the economic benefits outweigh the concerns.

Others have adopted stricter regulations, delayed approvals while gathering more information, or decided certain projects were not the right fit.

The differences often come down to local priorities, available infrastructure, and community goals.

Looking Ahead

Henry County has not been approached with or approved a data center project. Instead, county leaders have chosen to pause and study the issue through a temporary moratorium, giving officials time to better understand the opportunities, challenges, and potential regulations before making future decisions.

Next in the series: Henry County has already taken its first step by approving a temporary moratorium on new data centers. In Part 3, we'll explain what that moratorium means, why county officials believe it's necessary, and the questions they'll be working to answer before considering future proposals.

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