Lake County residents file lawsuit to block 472-acre data center campus in Grayslake

Lake County residents file lawsuit to block 472-acre data center campus in Grayslake

News ClipLake and McHenry County Scanner·Grayslake, Lake County, IL·8/8/2026

Lake County residents and a corporation have filed a lawsuit to block the 472-acre T5 @ Chicago IV data center campus in Grayslake, alleging that its approval was inconsistent with village plans and lacked adequate public disclosure. The plaintiffs challenge the Village of Grayslake's approvals, which were granted in 2024 and 2025 for a project of "unprecedented scale". T5 Data Centers has suspended its wetlands permit application due to community concerns, while the Lake County Board is considering a temporary moratorium on data centers in unincorporated areas.

legaloppositionzoningenvironmentalgovernmentelectricitymoratorium
Gov: Village of Grayslake, Grayslake Village Board, Lake County Circuit Court, Lake County Board, United States Army Corps of Engineers

A group of Lake County residents and the Preservation of Community Well-being Collective LLC filed a lawsuit on July 31 in Lake County Circuit Court, seeking to block the development of the T5 @ Chicago IV data center campus in Grayslake, Illinois. The lawsuit challenges the Village of Grayslake's approvals, granted between September 2024 and May 2025, for the 472-acre project, which includes over 10 million square feet of buildings and a 1.55 gigawatt electrical demand from ComEd.

The complaint names the Village of Grayslake, T5 Data Centers, LLC, and Alter Asset Management Company as defendants, alleging that the project is inconsistent with the village's Comprehensive Plan, Sustainability Plan, and Zoning Ordinance. Plaintiffs also claim a lack of transparency and public participation due to the project being referred to by a code-name in public notices, and accuse the village of violating the Illinois Open Meetings Act.

In response, T5 CEO Pete Marin announced that the company indefinitely suspended its wetlands permit application for the project due to community questions and concerns. Marin reiterated the company's commitment to delivering a sustainable development that promises over 1,600 jobs and significant tax revenue for local school districts and services. He also stated confidence that the company has followed all laws and regulations.

The Village of Grayslake has not yet been served with the suit and declined to comment. Separately, the Lake County Board is scheduled to hold a public hearing on August 18 to discuss a proposed temporary moratorium on data centers in unincorporated areas.