Warehouse upgrade could be start of two-phase, $300 million data center expansion in Elk Grove
Elk Grove Village's newest data center -- proposed for an old vacant warehouse in the middle of the sprawling village business park -- is the front end of a two-phase project worth a combined $300 million in new capital investment.
When complete, the 7-megawatt data center by EdgeConneX at 2021 Lunt Ave. will join the roster of more than a dozen of the computer storage sites in the Northwest suburb, one of the largest concentrations of data centers in the country.
The Herndon, Virginia-based technology firm plans to spend $62 million to convert and renovate the one-story, 63,250-square-foot building.
Plans call for an interior build out of the data center, office and security spaces; an upgrade of the building's structural integrity; reconstruction of the dock drive and apron; installation of a new roof; resurfacing, seal coating and striping of the parking lot and drive; and updated landscaping, according to the project description submitted to the village.
The redevelopment would bring 12 jobs to the site, officials said.
EdgeConneX purchased the property in May 2017, and Mueller Streamline Co. occupied the building until the end of 2018. But it's remained vacant ever since.
The building is next to a data center EdgeConneX has operated at 1800 Nicholas Boulevard -- among some 40 data centers the firm manages across North America, South America and Europe.
In a letter to village officials, a company representative wrote the new data center on Lunt would be the first phase of a two-phased expansion worth $300 million combined. Though the representative added that the proposed expansion is under internal review, and phase two could go elsewhere.
To help bring phase one to fruition, the village board last week supported the company's application for a Cook County Class 6B property tax break that would allow the site to be assessed at lower levels for a dozen years: 10% of market value for the first decade, then 15% in the 11th year and 20% in the 12th year. Industrial property is normally assessed at 25%.
Final approval is up to the county board. If approved, construction could begin before the end of the year, with an opening planned for December 2022.