Grayslake issues first permit for construction to begin on mega data center campus as lawsuit seeks to block development
The Village of Grayslake has issued the initial building permit for the T5 @ Chicago IV data center campus, commencing construction on an 800,000-square-foot facility. This development proceeds despite a recently filed lawsuit by residents and an advocacy group seeking to block the project and challenging the village's approvals. State Representative Daniel Didech has also voiced concerns regarding the project's potential impacts on energy, water, and the environment.
The Village of Grayslake, Illinois, has issued the first building permit for the T5 @ Chicago IV data center campus, allowing construction to commence on an 800,000-square-foot facility. This marks the initial phase of a projected $18 billion, 472-acre development that could encompass over 10 million square feet of buildings, expected to generate $1.4 billion in property tax revenue over two decades without local tax incentives. Grayslake Mayor Elizabeth Davies emphasized the village's debt-free status, allowing all new municipal revenue to directly benefit residents.
The permit issuance occurs amidst significant opposition, including a lawsuit filed last month by the Preservation of Community Well-being Collective LLC and nine Lake County residents in Lake County Circuit Court. The suit names the Village of Grayslake, T5 Data Centers, LLC, and Alter Asset Management Company as defendants, seeking to invalidate approvals, void the development agreement, and enjoin further permits. An initial status hearing for the lawsuit is scheduled for October 30.
Illinois State Representative Daniel Didech has publicly stated the project "should not proceed" unless the village and developer can demonstrate it will not adversely affect residents' energy costs, water supply, or environmental quality. He also criticized the village's decision to limit public comment at board meetings and plans to push for the "POWER Act" during the fall veto session, which aims to increase transparency on water and electricity consumption for such facilities. T5 Data Centers CEO Pete Marin affirmed commitment to community input, citing a voluntary withdrawal of a wetlands remediation application and adherence to stringent local and state regulations on sound mitigation, water, and electricity usage.