Madison County Excludes Data Centers From Enterprise Zone Property Tax Incentives

County Board action protects local taxpayers while leaving development decisions to communities

Oct 23, 2026 12:06 PM

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EDWARDSVILLE — The Madison County Board voted Wednesday to exclude data centers from property tax abatements offered through the Southwestern Madison County Enterprise Zone.

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“There’s no need to incentivize a data center,” Chairman Chris Slusser said. “They’re eager to build them.”

Slusser said strong demand for data center development makes those incentives unnecessary. The amendment preserves property tax revenue for local taxing districts while allowing communities to consider proposed developments.

Qualifying projects in the Southwestern zone — Granite City, Madison and Venice — currently receive a 10-year property tax abatement on eligible improvements. Slusser explained that the benefit covers the full amount during the initial years, then phases out.

He used the example of farmland developed into a warehouse. During the full-abatement period, the owner continues paying taxes on the underlying land value while receiving an abatement on the new development.

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The amendment excludes data centers from that benefit. Slusser said the county intends to pursue similar restrictions in other enterprise zones.

The Madison County Discovery Enterprise Zone operates differently. Property tax abatements there require consideration by individual taxing districts rather than applying automatically.

In the Discovery Zone, which includes Collinsville, Glen Carbon, Maryville, Troy, St. Jacob and Highland, a school district, for example, can decline to provide an abatement even if a municipality or township agrees to participate. Slusser said that structure already allows each taxing district to protect its financial interests.

Wednesday’s action does not prohibit data centers from locating in Madison County. Municipalities retain authority over local zoning and development decisions, and Slusser acknowledged that a community could consider a separate property tax incentive.

He said the county’s position remains clear.

“We would not want to do a property tax exemption for a data center,” Slusser said. “I would not support a data center project that offers a property tax incentive.”