Grayslake grants permit for large T5 data center project amid opposition and lawsuit
Grayslake has granted a building permit for the first phase of a massive T5 data center campus, despite ongoing opposition and a filed lawsuit. Opponents are concerned about the project's significant power and water consumption, while the village highlights its economic benefits and environmental safeguards. The project faces a lawsuit alleging Open Meetings Act violations during its approval process.
The Village of Grayslake, Illinois, has issued a building permit for the initial phase of a large data center campus in its Cornerstone business park, a project by Atlanta-based T5. The first building, spanning 800,000 square feet, is part of a planned 472-acre development that could include up to 18 data center buildings totaling 10.1 million square feet, representing an expected $18 billion private investment.
Village officials laud the project as potentially the largest economic investment in Lake County history, anticipating $1.4 billion in property tax revenue over 20 years for local taxing bodies, without requiring municipal tax incentives. They assert that the facility must comply with stringent local and state environmental regulations, emphasizing that the permit is not a "blank check."
However, the project has faced continuous criticism and questions from opponents who have regularly attended Grayslake village board meetings, organized protests, and sought support from other communities. Concerns primarily revolve around the campus's substantial power and water consumption, as well as broader environmental and infrastructure impacts. This local pushback reflects a national trend of increasing opposition to data centers and calls for moratoriums, including an expected eight-month halt on data center applications in unincorporated Lake County.
Despite initial approvals from an advisory committee and the Grayslake Village Board following multiple hearings, opponents have filed a lawsuit. They allege that the approval hearings were inadequate and violated Open Meetings Act rules, to which the village has responded with a motion to dismiss. Local school districts, including Fremont Elementary School District 79, Mundelein High School District 120, and Grayslake Community High School District 127, have been proactively coordinating with developers and municipal leaders regarding the project's implications.