Grayslake Data Center Project Faces Likely Legal Challenge

Grayslake Data Center Project Faces Likely Legal Challenge

News ClipChicago Tribune·Grayslake, Lake County, IL·6/5/2026

A local opposition group has issued a litigation hold against the Village of Grayslake, signaling an anticipated lawsuit over the planned T5 Data Centers project. The group alleges vague public notices during approval and inconsistency with village plans, raising concerns about wetlands and water consumption. Separately, Lake County has approved a moratorium on data centers in unincorporated areas, though it will not impact the Grayslake project.

legaloppositionzoningenvironmentalgovernmentmoratoriumwater
Gov: Village of Grayslake, Lake County Board, Lake County Planning, Building, Zoning and Environment Committee, Lake County Stormwater Management Commission, U.S. Army Corps of Engineers

The Village of Grayslake, Illinois, is facing a likely legal challenge from a local opposition group, the Lake County Data Center Opposition Coalition, over the proposed T5 Data Centers campus. Attorney Chloe Russell, representing the coalition, has issued a litigation hold against the village and expects a lawsuit in the coming months, though Mayor Elizabeth Davies confirmed no lawsuit has been filed yet as of Friday. The T5 @ Chicago IV project, a potential 10 million-square-foot data center campus on former farmland, is T5 Data Centers' second-largest project in Illinois.

The opposition group, co-founded by Michael Smith, alleges the project moved forward with a "cloak of secrecy" and that village notices were vague, failing to adequately inform the public about the data center's nature. They also claim the project is "wholly inconsistent" with Grayslake's comprehensive and sustainability plans and are questioning its impact on water consumption and wetlands. T5 has submitted a permit application to the U.S. Army Corps of Engineers to fill 15.75 acres of wetlands on the site, which also requires review by the Lake County Stormwater Management Commission.

The controversy has broader implications, with Lake County officials, including Board member John Wasik and Esiah Campos, distancing themselves from the project's approval, emphasizing it was a Village Board decision. In response to growing scrutiny, the Lake County Planning, Building, Zoning and Environment Committee approved a moratorium on data centers in unincorporated Lake County to develop new regulations, though this does not affect the Grayslake project.

Despite the resistance, Mayor Davies remains committed, citing potential benefits like $300 million in tax revenue and minimal impact on services. She defends the village's transparency, stating all open meetings acts were followed and issues raised by opponents are state and federal concerns, not municipal.