Kaegi: Data Centers, Corporate Land Undervalued In Cook County
Cook County Assessor Fritz Kaegi claims that data centers in Cook County, particularly in Elk Grove Village, are undervalued and under-taxed, shifting a higher property tax burden onto homeowners. Local officials, including Elk Grove Village Mayor Craig Johnson, dispute these claims, defending the use of tax incentives for data center development. The debate, which also touches on electricity use and environmental concerns, will be addressed in upcoming town hall meetings in Elk Grove Village and Des Plaines.
Cook County Assessor Fritz Kaegi alleges that major commercial properties, particularly data centers, are being undervalued and under-taxed, leading to a disproportionate property tax burden on residential homeowners. He cited Elk Grove Township, where homeowners' share of the property tax burden increased by 4 percentage points in 2022 due to significant valuation reductions granted to commercial properties during the appeals process.
Local officials, including Elk Grove Township Assessor Connie Carriselli and Elk Grove Village Mayor Craig Johnson, strongly refute Kaegi's claims. Johnson defended the village's strategy, positioning Elk Grove Village as the second-largest data center market in the U.S. and highlighting that its 20 operating data centers generated $45 million in property taxes last year, alongside substantial municipal electricity taxes.
The controversy has prompted simultaneous town hall meetings in Elk Grove Village and neighboring Des Plaines to discuss the local impact of data centers. Johnson emphasized that tax incentives are crucial for attracting major corporations like Microsoft, which is investing $10 billion in a 40-acre, three-building data center campus in the Elk Grove Technology Park. He also addressed environmental concerns, stating that modern data centers use closed-loop liquid cooling systems to conserve water and are typically located in business parks away from residential zones.
Kaegi's office countered that tax incentives artificially lower land values and defended its original assessments before the Cook County Board of Review. They highlighted cases where contested valuations for data centers, including the T5 Chicago II, Skybox Chicago 1, and EdgeConnex CHI 01 facilities, were largely upheld despite appeals seeking substantial reductions.