City of Alton Responds to Potential Data Center Proposal at Former Alton Steel Site

The City of Alton has been contacted by Alton Steel Inc. and TerraWatt about a potential proposal to purchase and redevelop the former Alton Steel property as a data center campus. No formal application for a permit, or zoning change has been made at this time.

The city is working to better understand the project, its potential benefits and what it could mean for the community. Data centers come with a promise of significant revenue to a community. The City of Alton will assess the true impact of such a development – including the economic impact, but also in terms of its water usage, energy consumption, noise levels, environmental affects and more.

The City of Alton will seek to hire a third-party consultant to provide expert support and advice to help inform decisions on this project. The city will need professional civil engineering, planning, and environmental support to vet this proposal and will work with City Council to procure these services immediately.

Alton Mayor David Goins said, "For more than a century, the Alton Steel site supported the jobs, businesses and tax base that helped our city to thrive. Finding a viable future use for this property is critical to Alton, and we recognize that this is an opportunity to bring new investment, jobs and revenues to our city.

"We look forward to working with Alton Steel and TerraWatt to answer our questions about jobs, tax revenue, electricity and water consumption, environmental protections, noise and traffic. We expect the development team to provide clear answers and work with us to ensure any benefits to Alton are meaningful and lasting."

Residents will also have opportunities to learn more about the potential proposal, meet the development team and ask questions. To begin, TerraWatt is reaching out directly to residents closest to the site and has published a project website and community survey where residents can learn more, share their perspectives and submit questions or concerns. The project website is www.riverbendalton.com. There will also be a public open house event, hosted by TerraWatt, on Tuesday October 27th, 2026 from 6:00-7:30pm. This open house will be at the Wedge Building located at 620 E Broadway, Alton, IL 62002.

The process

For a data center project to proceed at the former Alton Steel Site, the site will need to be rezoned. This project will follow the process set out in city code. The developer will need to submit an application, which must include a fully detailed site plan. This will then be referred, first to Plan Commission, and then to City Council. Both Plan Commission and City Council will discuss and vote on the application during a regularly scheduled meeting. The dates of these meetings will be determined based on when the application is submitted.

No application has been made at this time to the City of Alton. Once we receive an application, we can inform the public when the application will be discussed at Plan Commission and at City Council.

Please note that normal rules will apply, including application deadlines. Applications for amendments and special use permits are due on the first of the month prior to the set meeting date. Plan Commission is held on the second Tuesday of each month at 6:00pm in the Alton City Council Chambers. A full list of Plan Commission and City Council meetings can be found on the City of Alton website at www.cityofaltonil.gov.