Critics of Grayslake data center plan sue to stop construction

Opponents of a planned data center in Grayslake have gone to court to stop the multibillion-dollar project.

They claim data centers aren’t expressly permitted under Grayslake’s zoning rules and that Grayslake officials violated the Illinois Open Meetings Act by improperly deliberating the proposal and negotiating or deciding terms of the deal in closed-door meetings and by discussing the agreement in emails and other private channels.

They also allege the village’s approvals of aspects of the project in 2024 and 2025 violated Illinois’ due process protections.

The lawsuit was filed July 31 in Lake County circuit court by a group called Preservation of Community Well-Being Collective and nine Lake County residents. It names Grayslake, T5 Data Centers and Alter Asset Management as defendants.

T5 is the Atlanta company that intends to build the data center. Alter Asset Management is the suburban company that planned the development in which the data center is set to be built; it subsequently sold land for the project to T5.

The plaintiffs are seeking injunctions to invalidate the village’s approvals of aspects of the plan; permanently prohibit Grayslake from issuing further permits to T5 based on those approvals; and void the development agreement between Grayslake and T5.

Grayslake Village Manager Mike Ellis declined to comment on the lawsuit Friday, saying officials haven’t yet seen it. Representatives for T5 and Alter Asset Management couldn’t be reached.

The plaintiff’s attorney, Chloe A. Russell, couldn’t be reached, either.

T5 intends to set up shop in the Cornerstone business park, near Alleghany and Peterson roads. A campus of up to 472 acres with 18 data center buildings has received village approval, and preliminary site work began last year.

Grayslake officials have estimated the investment in the phased development could be as much as $18 billion and add significantly to the tax bases of park, fire, school and library districts.

Critics of the plan, including a group called the Lake County Data Center Opposition Coalition, have questioned the environmental impact of the proposed operation. Water and energy use have been particular concerns.

The critics have spread their messages in neighborhoods and online, spoken at meetings and organized public protests.

Citing community questions and concerns, T5 Data Centers late last month suspended its application for a wetland remediation permit. The company had intended to fill in nearly 16 acres of wetland on the property.

In a statement following that decision, T5 CEO Pete Marin said the company is “fully committed to continuing our partnership with local officials.”

rlissau@dailyherald.com