$1 billion redevelopment would make it a dozen data centers in Elk Grove

Elk Grove Village — already home to 11 data centers — is about to get one of the largest such storage sites in the Chicago O'Hare market, solidifying its placement as a Midwestern hub.

San Francisco-based Prime Data Centers, Corp. has proposed a $1 billion, 150 megawatt data center campus across two dozen acres on the northwest corner of Higgins and Busse roads. Three, 3-story buildings totaling more than 750,000 square feet would house servers, wires and related equipment for Prime and third-party customers that lease space there.

Village officials are behind the effort to lure the tech center to town, through a complex assemblage of parcels that has the village acquiring the properties and selling them to Prime. On Tuesday night, the village board inked a purchase and redevelopment agreement with Prime that calls for the municipality to eventually sell as many as six parcels to the firm for an estimated $30 million. Elk Grove owns two parcels, and is pursuing the acquisition of the other four.

Officials say they're doing it as part of an overall strategy to attract investment and revitalize the Busse Road corridor, adding that the data center campus will further the growth of the village, increase property values and generate more utility taxes.

“The fact that Prime Data Centers is making this kind of investment in our community confirms for us that we're delivering on our mission to become a worldwide destination for high-tech companies and manufacturers,” said Mayor Craig Johnson.

Under the proposed redevelopment plan, Prime will pay Elk Grove $21.3 million once the village has acquired two more properties — an office building complex at 1500 E. Higgins Road and retail strip building at 1700 Oakton St. Officials say they've entered into agreements with the property owners, with a closing planned on or before Dec. 1.

The village already has the former Elk Grove Hotel site at 1600 Oakton St. and other office buildings at 1550 E. Higgins Road.

All together, Prime's proposed phase one development calls for three data centers and a ComEd substation.

A potential phase two would include a construction materials company site to the north at 1520 Midway Court and Illinois Department of Transportation right of way. Prime would pay Elk Grove an estimated $8.7 million for those properties, if the village can acquire them first, according to the redevelopment agreement. Officials say negotiations continue.

The project is still subject to village building and zoning approvals. The developer plans to file a petition for rezoning and resubdivision, to be heard by the plan commission Nov. 8 and the village board Nov. 16, with final approval Dec. 14.

Prime also plans to apply for a Cook County Class 6b tax incentive, which would allow the property to be assessed at lower levels for a dozen years.

A groundbreaking is scheduled for May 2023.

This site plan shows the two-phase, $1 billion data center campus redevelopment proposed on the northwest corner of Higgins and Busse roads in Elk Grove Village. Courtesy of Elk Grove Village
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