ROCHELLE —ROCHELLE — The Rochelle City Council has rejected a resolution that would have authorized a development agreement with Midwest Power Investors LLC for a proposed data center on land north of Steward Road, west of the BNSF railroad, and south of Interstate 88.
City officials said the proposal followed more than a year of planning, including a zoning amendment in March 2025 allowing data centers in industrial districts and a public meeting in November 2025. The agreement outlined plans for electrical upgrades funded by the developer up to $4.1 million, along with water, sewer, and roadway improvements, and would have allowed the city to provide up to 48 megawatts of power during the first phase. The developer also planned to pay a $50,000 impact fee and cover infrastructure costs, including an estimated 2.8 million dollars for water and sewer. Additional phases could have expanded capacity beyond 150 megawatts with further agreements.
Developer Zach La Motta said he had heard concerns from the city council and adjusted the project goals.
“We have formally proposed the removal of phase two and phase three from the agreement on the table tonight. Project Crossroads will be limited to 48 megawatts. This is not a hyperscale data center. It is a single-phase project. We see this as an opportunity for Rochelle to participate in the future of infrastructure at a modest and manageable scale that can be easily absorbed by this community.”
Mayor John Bearrows expressed concerns about the project, saying:
“If approved, the data center’s unprecedented electric use could put additional pressure on the city’s infrastructure, possibly leading to limited capacity for other types of future growth. It could also make Rochelle less attractive to other businesses. If there is a shortage and we’re short of power, I hate to have to be sitting at this council and turn them down because we just don’t have enough power.”
Officials said the project was expected to generate more than $1 million annually in utility revenue, about $400,000 in utility tax funds, and additional property tax revenue, but the council declined unanimously 0-7 to move forward with the agreement.
