In recent years, the conversation around data residency and the economic development tied to tech infrastructure has been gaining momentum. Chicago has taken a leading role in this movement with the passing of a bill focused on data residency requirements, which mandates that critical data generated by local institutions—particularly in sectors like government, healthcare, and finance—must remain within local or regional jurisdictions. This effort underscores the importance of data sovereignty, ensuring that sensitive information remains within the geographical boundaries of Chicago, while also fostering local economic growth and community development.
At the forefront of this movement is Metro Edge Development Partners, whose flagship project, IMD1, is a state-of-the-art data center located in Chicago’s Illinois Medical District. This 184,720-square-foot facility represents the future of urban data centers, with seven layers of physical security and biometric access control. Offering 50 MW of total power (28 MW in its initial phase), IMD1 serves Chicago-based institutions, providing them with a low-latency option for storing and processing critical data. It is designed to support hospitals, healthcare providers, educational institutions, and government entities, all while delivering security, efficiency, and economic opportunity.
Career Communications Group
Vice President Pence
Pence Supporting Black Business in Gary.
However, IMD1 is not just a technological marvel; it is a model for community-driven development. Located on Chicago’s West Side, an area traditionally underserved, the data center is part of a broader strategy to address social inequities by providing much-needed employment and tech career opportunities to local residents. Through partnerships with educational institutions and community organizations, Metro Edge plans to train talent from the neighborhood for entry-level tech jobs, helping to diversify the technology industry while creating long-term, sustainable change.
This approach to tech-driven economic development is something Baltimore can learn from. The city’s Thurgood Marshall Amenity Center and STEM City Baltimore have already shown their commitment to fostering innovation and community advancement. However, by adopting elements from Chicago’s model, Baltimore could further its efforts to reduce the digital divide, attract tech investment, and create employment opportunities in underserved areas.
Like IMD1, a Baltimore-based data center initiative could emphasize the importance of data sovereignty, ensuring that critical data remains within the region while creating tech hubs that offer low-latency solutions to local institutions. Additionally, Baltimore could replicate Chicago’s focus on community engagement by forming strategic partnerships with local schools and training programs to equip residents with the skills necessary to thrive in the digital economy.
This shared vision of leveraging technology for community advancement is deeply personal for Tyrone Taborn, founder of Career Communications Group, and Vance Kenney, co-founder of Metro Edge. With a friendship spanning over 30 years, Tyrone and Vance have long been committed to uplifting underserved communities through innovative tech solutions and economic empowerment.
Vance, an influential business leader and urban economic development expert, has played a pivotal role in the redevelopment of Gary, Indiana, and now with Metro Edge, he’s bringing that same passion for community advancement to Chicago. His work in founding and leading companies like Advance Energy LLC and 504 Redevelopment LLC has given him a deep understanding of how to create economic opportunities through strategic investments in infrastructure.
Together, Tyrone and Vance exemplify how visionary leadership and a shared commitment to community can drive lasting change. Their partnership is a testament to the idea that technology should be a tool for empowerment, not just for profit. As Baltimore looks to the future, the lessons learned from Chicago’s data residency bill and IMD1 project offer a blueprint for how to combine tech innovation with social good.
By aligning the goals of STEM City Baltimore and the Thurgood Marshall Amenity Center with the principles demonstrated in Chicago, Baltimore can pave the way for a more equitable, tech-driven future. Through focused investment in tech infrastructure, community training programs, and a commitment to data sovereignty, Baltimore can ensure that its residents—particularly those in underserved communities—have access to the opportunities of tomorrow.
In a world increasingly driven by data, cities like Chicago and Baltimore have the chance to lead by example, showing how technological advancements can uplift entire communities and ensure that no one is left behind. As Tyrone Taborn and Vance Kenney continue their journey of community empowerment through technology, their vision offers hope and inspiration for cities across the nation.
Key aspects of the Chicago bill include:
Data Sovereignty: Data generated by Chicago’s institutions, particularly in sectors like healthcare and finance, must remain within local data centers to ensure compliance with privacy laws and reduce the risk of breaches or unauthorized access from foreign entities.
Economic Development: The bill encourages investment in local infrastructure, which in turn creates jobs and supports the regional economy. By establishing more data centers in areas like the West Side of Chicago, tech companies are expected to bring much-needed employment opportunities to historically underserved communities.
Reduced Latency for Critical Institutions: By keeping data physically closer to the institutions that generate it, the bill ensures faster processing times, benefiting organizations that rely on real-time data, such as hospitals, healthcare providers, and research institutions.
Sustainability and Security: The bill promotes the construction of eco-friendly data centers that prioritize energy efficiency while maintaining the highest levels of data security through physical and cyber safeguards.
The Bill:
S U B S T I T U T E O R D I N A N C E
BE IT ORDAINED, BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. Chapter 2-68 of the Municipal Code of Chicago is hereby amended by inserting a new Section 2-68-050, as follows:
2-68-050 Data residency requirements for City data.
- For purposes of this section:
“City data” means final versions of information that are: (1) in alphanumeric form reflected in a list, table, graph, chart, or other non-narrative form, that can be digitally stored and retrieved; (2) created or maintained by or on behalf of a City agency and are controlled by that City agency; and
(3) related to the mission of a City agency. The term “City data” shall not include information that is: (1) provided to a City agency by other entities; (2) created or maintained by or on behalf of a City or other United States public safety official operating in their official capacity outside of the United States; (3) subject to one or more international exchange agreements for the exchange of criminal justice information with one or more foreign government agencies; or (4) created or maintained for the purpose of backup or recovery.
“Earned credit” means the amount of the bid preference allocated to a vendor upon completion of a contract during which the vendor met a data residency commitment under subsection (c)(1) of this section during the performance of a City contract.
- Unless otherwise authorized by the Chief Information Officer, any contract advertised and entered into by the City after the effective date of this section that provides for the storage of any City data shall include a requirement that such City data must be processed, stored, and disposed of within the jurisdiction of the United States.
- (1) Unless otherwise prohibited by federal or State law, and subject to paragraphs (2) through (5) of this subsection (b), for any contract advertised and entered into by the City after the effective date of this section that provides for the storage of City data, the Chief Procurement Officer shall allocate to any qualified bidder an earned credit of: (A) two percent of the contract base bid for ensuring that all such City data are stored within the State of Illinois outside the corporate boundaries of the City; and (B) four percent of the contract base bid for ensuring that all such City data are stored within the corporate boundaries of the City other than at a City-owned data center.
- Any earned credit allocated pursuant to this section must be utilized within three years of issuance by the Chief Procurement Officer.
- If a contractor is allocated a bid preference pursuant to Section 2-92-412, the contract shall not be eligible to receive the earned credit allocated pursuant to this section.
- The Chief Procurement Officer may determine not to allocate an earned credit under this section when the Chief Procurement Officer determines doing so is not in the City’s best interest.
- As part of the contract closeout procedure, if the Chief Procurement Officer determines that the contractor has successfully met its data residency commitment, the Chief Procurement Officer shall issue an earned credit certificate that evidences the amount of earned credits allocated to the vendor. The vendor may apply the earned credits as the bid preference for
any future contract bid of equal or greater dollar value. The earned credit certificate is valid for three years from the date of issuance and shall not be applied to any future contract bid after the expiration of that period. To receive the earned credit certificate, the vendor shall maintain accurate and detailed books and records necessary to monitor compliance with this section and shall submit such reports as required by the Chief Procurement Officer or the commissioner of the supervising department. Full access to the contractor’s records shall be granted to the Chief Procurement Officer, the commissioner of the supervising department, or any designee thereof.
The contractor shall maintain all relevant records for at least three years after final acceptance of the work.
- The Chief Information Officer and Chief Procurement Officer are authorized to adopt rules for the proper administration and enforcement of this section. The Chief Information Officer is authorized to define by rule the term “data center” for purposes of this section.
SECTION 2. The Chief Sustainability Officer shall establish an interdepartmental working group to review and recommend policies and practices to address the environmental and energy impacts of data centers within the City of Chicago. The interdepartmental working group shall include, but is not limited to, representatives from the Department of the Environment, the Department of Planning and Development, the Department of Public Health, and the Department of Technology and Innovation. By December 31, 2025, unless extended for a period not exceeding six months by the Chief Sustainability Officer, the interdepartmental working group shall make publicly available their findings and present a report to a joint committee consisting of the Committee on Economic, Capital and Technology Development and the Committee on Environmental Protection and Energy. This section shall expire following presentation of the interdepartmental working group’s report.
SECTION 3. After passage and publication, this ordinance shall take effect on January 1,
2025.
GILBERT VILLEGAS
Alderman, 36th Ward