‘A place of innovation and opportunity’: Work underway for data center campus in Grayslake

One of the largest economic development projects in recent Lake County memory and which Grayslake officials say is a major step for the village's long-term economic growth is underway.

Site work and construction of the first three buildings and a power substation is ongoing near Peterson and Allegheny roads for T5 Grayslake, described as the next-generation, AI-ready data center campus.

In May 2024 Atlanta-based T5 Data Centers announced it would be significantly expanding its footprint by building a data center at the expansive Cornerstone business park in Grayslake.

Over the past year, an advisory committee and village board have reviewed and given unanimous approvals for each part of a phased development the village estimates at $8.5 billion.

The first of up to 18 data center buildings totaling more than 10 million square feet are being built north of the immense Medline Industries distribution center, which for comparison spans 1.4 million square feet.

Early signs of activity have drawn attention.

“Now that they’re grading, people are like, ‘What’s up here?’” said Mayor Elizabeth Davies. “This is one of the largest investments in Lake County in some time.”

The timeline will depend on demand. The first batch of power will be delivered in June 2027 and full build out is expected over the next seven to 10 years.

According to Davies’ pending update to residents, the project will add “significant high-value property to Grayslake” and benefit local schools as well as the park and fire districts.

Estimates of what that could amount to aren’t available, but village officials in supporting T5 have emphasized the need to increase the nonresidential tax base.

The T5 project is a “forward-looking investment that strengthens Grayslake’s southern corridor as a place of innovation and opportunity,” according to Davies.

Data centers, she added, are critical to the digital infrastructure we rely on, from cloud computing and AI to everyday data needs of schools, businesses and others.

T-5 controls more than 490 acres of developable land on either side of Peterson Road and is strategically positioned for construction of advanced cloud and AI data centers, according to David Horowitz, senior vice president and head of leasing.

“We plan to develop the entire campus into a data center ecosystem,” he added.

T5 plans to have 1.2 gigawatts of power available for customers. A gigawatt is a billion watts, which is the equivalent power of 100 million LED bulbs or 1.88 million solar photovoltaic panels, for example, according to the U.S. Department of Energy.

The development is demand-driven with the number of buildings and configurations tailored to customer needs with options for expansion in 12-megawatt (12 million watt) increments, according to Horowitz.

To provide that, T5 has secured 1.5 gigawatts of power in partnership with ComEd, positioning T5 as a leader in power availability in the region, Horowitz said.

An on-site primary ComEd transmission substation will be supported by three dedicated T5 substation switchyards throughout the property. The substation will have the future ability to serve other large projects in the area, according to ComEd spokesperson Lauren Huffman.

Horowitz said the procurement has been underway for 18 months, allowing T5 to get ahead of significant changes ComEd and utilities across the country have made to power allocation and procurement processes.

Significant power and water needs for cooling equipment are among the concerns involving data centers.

Davies said the arrangement will ensure reliable power for T5 without affecting Grayslake’s capacity or service.

The cost of upgrades for large-scale projects such as data centers largely are contained to the business customer category of similarly sized large customers not including residential customers, Huffman said.

All ComEd rates and charges are regulated by the Illinois Commerce Commission and represent the utility’s cost of operating the power grid, she added.

Horowitz said the T5 design features an air-cooled mechanical system that significantly reduces water consumption.

Davies said the system will use significantly less water than a traditional office complex.