Against the grain: Defying trends, Grayslake welcomes start of massive data center project
Amid continuing pushback against data centers from communities across the country, Grayslake on Tuesday announced it has granted a building permit for the first component of a massive data center campus in the Cornerstone business park.
An 800,000-square-foot building will be the first to emerge for T5@Chicago IV, as part of a planned 472-acre project along Peterson Road west of Route 83.
The village highlights it as possibly the largest economic investment in Lake County history, even as unflagging opponents continue to question the amount of power and water the campus will consume, as well as other potential impacts on the area.
The objections are emblematic of growing opposition nationally and calls for moratoriums — including an expected eight-month hold on data center applications in unincorporated Lake County — along with more comprehensive guidelines.
In Grayslake, the T5 project calls for as many as 18 data center buildings totaling as much as 10.1 million square feet. It’s been described as a next-generation, AI-ready data center campus.
Village officials said the first building marks the operational start of an expected $18 billion private investment by Atlanta-based T5 that will generate tens of millions annually in property taxes for schools and other local governments.
“Secured without local municipal tax incentives, tax exemptions or TIF (tax increment financing) subsidies, the development is projected to generate $1.4 billion in property tax revenue over 20 years across local taxing bodies,” the village said in an announcement of the permit Tuesday.
The revenue can be used to fund “game-changing local projects,” according to the village. The statement insists that “strict environmental and local safeguards” will be enforced.
“Like every structure built within the municipality, the facility must meet stringent local and state regulations,” the statement reads. “By no means is this permit a blank check; as Grayslake grows, doing so in an environmentally responsible way remains a top priority.”
But the project since spring has generated continuous questions and criticism from opponents who have packed Grayslake village board meetings, held protests, and sought support at meetings in other communities.
In a message to families a few weeks ago, Fremont Elementary School District 79 said it has been in “proactive coordination” with Mundelein High School District 120 and Grayslake Community High School District 127, as well as financial advisers, legal counsel legislators, developers and municipal leaders regarding the project.
“District 79 leadership recognizes that a commercial proposal of this magnitude raises significant questions among our residents regarding environmental footprint, local infrastructure, power and water demands and overall land use,” the message reads.
An advisory committee and the Grayslake village board gave initial approvals for the project over a number of hearings and meetings between September 2024 and May 2025.
However, opponents have filed suit alleging, among other things, that the hearings were inadequate and Open Meetings Act rules were violated. The village has responded with a motion to dismiss the suit.
The village recently updated the frequently asked questions section of its website including details on the project and background.
mzawislak@dailyherald.com