Data center company building $75 million Des Plaines facility

 
 
Updated 12/5/2018 12:52 PM
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  • This rendering shows plans by Iron Mountain Data Centers to build a $75 million facility at the former location of men's suit manufacturer Hart Schaffner Marx at 1680 E. Touhy Avenue in Des Plaines.

    This rendering shows plans by Iron Mountain Data Centers to build a $75 million facility at the former location of men's suit manufacturer Hart Schaffner Marx at 1680 E. Touhy Avenue in Des Plaines. Courtesy of Iron Mountain Data Centers

A $75 million data center likely will replace the former Des Plaines location of men's suit manufacturer Hart Schaffner Marx, which relocated within the city this year.

The city council unanimously recommended a property tax break Monday to lure Iron Mountain Data Centers into building a 330,000-square-foot facility on about 13 acres at the northwest corner of Maple Street and Touhy Avenue. Hart Schaffner Marx occupied the property until moving its 350 employees to 901 Oakton St.

The facility, which will store data for companies, would create about 30 to 50 jobs, according to the company's application.

Sixth Ward Alderman Malcolm Chester, whose ward would include the new data center, said the facility makes sense for the area because it would create less truck and employee traffic for nearby residents compared to the men's suit manufacturer.

"I'm pleased about the project, I'm glad that the space is going to be utilized and I strongly favor it," Chester said.

Aldermen recommended that Cook County should approve a 6b tax incentive for the project, which lowers the assessed value of a qualifying industrial property for 12 years.

Besides new jobs, the payoff for the city and county is more property tax revenue than the currently vacant property where the Hart Schaffner Marx building recently was razed. Additionally, officials predict the electricity usage required to power the data center when fully operational will generate about $850,000 annually in utility tax revenue for the city.

Iron Mountain plans to begin building office space and one of the data halls next year, with operations starting in 2020. The company expects the building to be completed and fully operational by 2024.

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