Elk Grove Village giving residents $200 gift cards funded by sale of two data centers

At a time when communities across the Chicago area are grappling with how to handle the booming data center industry, northwest suburban Elk Grove Village is embracing it.

The village's data centers are generating millions in revenue, and now residents are getting a share.

All 14,000 households in Elk Grove Village will soon be getting $200 gift cards, money the mayor said comes directly from the sale of two data centers.

"It's coming right before the holidays. People can use it. Gas is still high. Groceries still high," Elk Grove Village Mayor Craig Johnson said. "100% from data centers. Not one residential dollar went into this."

It's being called Christmas in October. Johnson said residents will soon receive $200 gift cards from the sale of two data center properties that generated $4 million dollars in real estate transfer tax revenue for the village.

"We get $60 million a year they pay in property taxes," Johnson said. "We want to share the benefit that they have in the village with the residents."

Elk Grove Village is home to 20 data centers, with five more under construction. It comes as several suburbs have paused new data center applications over environmental and energy concerns and skepticism over the touted benefits. 

"This is just the beginning. If we don't pass commonsense guardrails in Springfield, electric bills are going to get a lot higher, which is ridiculous, because data centers come from some of the wealthiest corporations in the world," said Jim Chilsen with the Citizens Utility Board, a consumer watchdog group.

A study by the Illinois Economic Policy Institute projected that $57 billion worth of new data center investments through 2035 will create 121,000 jobs.

Donata Latrofa, a candidate for village board trustee in Elk Grove Village, questioned the timing of the $200 gift cards, with the village's municipal election coming up in April.

"$200 in the fall before election, we all know better chance than not that the people who gave you the $200 are going to expect you to support them," he said.

Johnson shrugged off those concerns.

"People can't be bought out for $200. You know that. I know that," he said.

While the mayor said the money for the gift cards is from the data center sale, Latrofa argued that the money being distributed was already public money.

"Let's not pretend that this was money that fell from sky. This was money that was yours to begin with in the first instance, and they just gave it back to you this week," he said.

Elk Grove Village residents will soon get two letters; one explaining the program, and then another with the gift card.