Lake County Board enacts moratorium on data centers in unincorporated areas

Lake County Board enacts moratorium on data centers in unincorporated areas

News ClipLake and McHenry County Scanner·Lake County, IL·9/8/2026

The Lake County Board has enacted a temporary moratorium on new data center approvals in unincorporated areas until May 2027, aiming to develop comprehensive regulations. This action follows significant public opposition to a separate T5 Data Center project in Grayslake, which is now facing a lawsuit challenging its village approvals.

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Gov: Lake County Board, Village of Grayslake, Lake County Zoning Board of Appeals, Lake County Planning, Building and Development department, Lake County PBZ&E Committee, Grayslake Village Board

The Lake County Board in Illinois has voted to impose a temporary moratorium on the approval of new data centers in unincorporated areas until May 11, 2027. This ordinance, which immediately amends Chapter 151 of the county's Code of Ordinances, allows the county to research, develop, and implement new regulations, definitions, zoning classifications, and performance standards for data centers.

This decision comes just one week after the Village of Grayslake granted the first building permit for the T5 @ Chicago IV data center campus within its municipal limits. The 472-acre T5 development, approved by the Grayslake Village Board last year, could encompass over 10 million square feet of buildings and has faced months of intense opposition from local residents due to concerns about land use, energy and water demands, infrastructure, noise, and environmental impacts.

A lawsuit was filed on July 31 by Lake County residents against the Village of Grayslake, T5 Data Centers, LLC, and Alter Asset Management Company. The suit seeks to invalidate the village's approvals, void the development agreement, and permanently bar further permits.

Lake County Board Chair Sandy Hart and PBZ&E Committee Chair Marah Altenberg emphasized that the moratorium is a critical step to address data centers responsibly, reflecting community priorities. District 16 Board Member Esiah A. Campos added that the county is taking pressure from all sides but ultimately chooses its citizens, ensuring they have a meaningful voice in decisions that could fundamentally change their communities.