--- title: A Multi-Billion-Dollar Data Center Takes a Step Forward in Coal City description: Coal City, IL, advances a major data center project with substantial investment potential, signaling opportunities for suppliers and contractors in the sector. image: https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/68c301ebaa36be33aa2af8f7_1a3f16114a452999cc4d7d6b36ae1602_Obedio%20march%20of%20progress.png --- [Skip to content](https://hs.getobedio.com/blog/a-multi-billion-dollar-data-center-takes-a-step-forward-in-coal-city#main-content) [![Obedio logo with black text and an orange graphic composed of four circles and a diagonal arrow pointing up and right.](https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/66529844eddaa630d6da1b42_obedio%20gold%20for%20white%20background.png)](https://getobedio.com) [Team](https://www.getobedio.com/team) [Pricing](https://www.getobedio.com/pricing) [Contact](https://www.getobedio.com/demo) [Blog](https://www.getobedio.com/blog) [Login](https://obed.io/v4/login) Local Ordinance Data Center Land Use # A Multi-Billion-Dollar Data Center Takes a Step Forward in Coal City ![Obedio research](https://7528315.fs1.hubspotusercontent-na1.net/hub/7528315/hubfs/raw_assets/public/mV0_d-cms-elevate-theme_hubspot/elevate/images/avatar-placeholder.jpg?width=48&height=48&name=avatar-placeholder.jpg) Obedio research June 30, 2026 On June 24, 2026, the Village Board of Coal City, Illinois, advanced one of the largest economic-development projects in the community’s history: a proposed Aligned Data Centers campus south of Reed Road that backers say represents a multi-billion-dollar investment. With newly released project details now public — from a roughly 305-acre site and a dedicated substation to an estimated 2,000 construction jobs — here is what the data center supply chain needs to know. ## What the Board Did The Village Board adopted two tax increment financing (TIF) inducement resolutions: - **Resolution 26-09** — a redevelopment project involving **The Reed Group, LLC**, the local landowner and developer. - **Resolution 26-10** — a redevelopment project involving **Aligned Data Centers (Acquisition) PropCo, LLC**, the data center developer and operator. Both resolutions amend earlier inducement resolutions the board first adopted on November 25, 2024 (Resolutions 24-13 and 24-14), which acknowledged that the two entities intended to plan a development in the Village’s industrial park and might seek TIF assistance. The June 2026 amendments update that framework to reflect eighteen months of progress. ## The Development, in Detail The project is a hyperscale-class **data center campus** on land **south of Reed Road** in Coal City’s industrial park, Grundy County. Aligned’s own community materials describe a site of approximately **305 acres**. The deal pairs a local landowner with a national operator: - **The Reed Group, LLC** — a local landowner/developer (1488 South Broadway Street, Coal City) assembling and preparing the property. - **Aligned Data Centers** — a national hyperscale and colocation developer/operator founded in 2013 and headquartered in Plano, Texas, known for its adaptive, modular infrastructure. Key engineering and infrastructure details now on the public record: - **Power.** Aligned has told the Village it will **fund a new substation and switchyard at no cost to ratepayers** — infrastructure that is also designed to serve future loads in the surrounding area. The campus would connect directly to the high-capacity regional transmission system (under ComEd Transmission Security Agreements), bypassing local distribution lines used by homes and small businesses. - **Cooling and water.** The design uses an **air-cooled heat rejection system paired with a sealed closed-loop** that recycles deionized water, so ongoing water use is minimal — Aligned projects roughly 41,500 gallons per day at the site. - **Sound.** Operating sound levels are projected to stay within **55–65 dB at the nearest residence**, with critical-grade silencers, acoustically treated enclosures, setbacks, and defined quiet hours. - **Investment.** The resolutions state the developer’s total estimated investment will be in the **multi-billions of dollars**. ## Jobs and Local Sourcing — The Supplier Headline For contractors and vendors, the most important details are in Aligned’s workforce commitments: - **~2,000 projected construction roles**, with a stated commitment to maximizing local union labor — and the **largest demand in the MEP trades** (mechanical, electrical, and plumbing). - **~300 permanent full-time positions** operating the facility, plus **thousands of estimated indirect jobs** across the regional economy. - Aligned says it will **prioritize local construction personnel** and that **locally sourced vendor arrangements are expected to include mechanical and electrical contracts, landscaping, janitorial, and security**. - The company has also signaled trade-pipeline investment, including a $100,000 donation to the mikeroweWORKS Foundation supporting welding, HVAC, electrical, and plumbing certifications. For electrical and power-distribution firms, substation and high-voltage contractors, mechanical and cooling specialists, civil and site-work crews, general contractors, and commissioning, security, landscaping, and janitorial vendors, that is a clear map of where the early and sustained demand will sit. ## How the Project Advanced: The “But-For” Letters Since the 2024 resolutions, both parties have submitted formal “but-for” letters — representations that the project would not be financially feasible *but for* the requested TIF incentives. The Reed Group’s letter (January 12, 2026, signed by asset manager Joseph J. Phillips) cites property assemblage, infrastructure, and site costs. Aligned’s letter (February 26, 2026, signed by Executive Vice President David W. Robinson) adds the cost of constructing the power substation. The “but-for” test is a cornerstone of Illinois TIF law under the Tax Increment Allocation Redevelopment Act (65 ILCS 5/11-74.4 *et seq.*), and clearing it is a meaningful procedural marker. ## The Financing Path: Two Options The resolutions lay out two possible routes for the Village to capture and share tax increment: 1. **Create a new TIF District II** that includes the developer’s property and project, or 2. **Adopt a 4th Amendment to the existing TIF District I**, which would require obtaining a 12-year legislative extension of that district. The Village has not committed to either path; the resolutions express the board’s “intent and sense” rather than a binding guarantee. Notably, the inducement allows TIF-eligible project costs incurred *from the date of the resolution* to potentially be reimbursed later through a special tax allocation fund — provided a redevelopment agreement is ultimately executed — giving the developer a basis to begin incurring certain pre-development costs now. ## Important Caveats The inducement resolutions are explicitly **non-binding**. They do not guarantee that a TIF district will be created or extended, that a redevelopment agreement will be reached, or that the necessary zoning relief will be approved — the developer acknowledges as much in the resolution language. Jobs and investment figures are the developer’s own projections. The project still depends on the Village securing its financing path and the parties negotiating final terms. ## The Bottom Line Coal City has now signaled twice — in 2024 and again in June 2026 — that it wants a major data center development in its industrial park and is prepared to use tax increment financing to help make it happen. With both “but-for” letters filed, a roughly 305-acre site identified, a developer-funded substation in the plans, and an estimated 2,000 construction jobs weighted toward the MEP trades, the project has cleared meaningful hurdles. For the suppliers and contractors who serve this sector, it is a development worth watching closely as it moves toward redevelopment agreements and, potentially, construction. ## Share this post [mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2Fa-multi-billion-dollar-data-center-takes-a-step-forward-in-coal-city](mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2Fa-multi-billion-dollar-data-center-takes-a-step-forward-in-coal-city) ## Keep reading ### [California Ballot Measure Local Municipalities California voters will decide 118 local tax measures and $8.07 billion in bond requests on November 3](https://hs.getobedio.com/blog/california-voters-will-decide-118-local-tax-measures-and-8.07-billion-in-bond-requests-on-november-3) ### [Local Ordinance Zoning Ordinance Development Data Federal Realty Asks La Mesa to Approve a 165,000-Square-Foot Bass Pro Shops Where Macy's Stood at Grossmont Center](https://hs.getobedio.com/blog/federal-realty-asks-la-mesa-to-approve-a-165000-square-foot-bass-pro-shops-where-macys-stood-at-grossmont-center) [![Obedio your municipal data source](https://hs.getobedio.com/hs-fs/hubfs/google%20workspace-1.png?width=100&height=41&name=google%20workspace-1.png "Obedio your municipal data source")](https://getobedio.com) Obedio's business intelligence platform provides data and insights from over 25,000 municipalities, enabling retail, manufacturing, finance, real estate, and government clients to make informed decisions, assess risk, and identify opportunities. **Data Source & Liability Disclaimer:** The data presented on this website is aggregated from various official government and public entities ("The Original Government Sources"). This data may have been modified for use from its original source. The Original Government Sources do not vouch for the quality, accuracy, or timeliness of the data as presented here. All data is provided "as is." Neither Global Regulatory Risk Advisors, Inc. (d/b/a Obedio) nor The Original Government Sources make any representations or warranties as to the completeness, accuracy, or content of any data made available through this site. All warranties, whether express or implied, including implied warranties of merchantability or fitness for a particular purpose, are expressly disclaimed. **Usage & Intellectual Property:** While the underlying facts are public records, the specific compilation, organization, and presentation of this information are proprietary to ****Global Regulatory Risk Advisors, Inc. (d/b/a Obedio)****. Any unauthorized copying, distribution, or display of this proprietary presentation is prohibited. Copyright © 2018–2026 Global Regulatory Risk Advisors, Inc. 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