Billion dollar redevelopment would make a dozen data centers in Elk Grove

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Elk Grove Village, which is already home to 11 data centers, is poised to acquire one of the largest such storage sites in Chicago’s O’Hare market, further consolidating its position as a hub of the Midwest.

San Francisco-based Prime Data Centers, Corp. has proposed a billion-dollar, 150-megawatt, two-dozen-acre data center campus at the northwest corner of Higgins and Busse highways. Three 3-story buildings totaling over 750,000 square feet would house servers, cables and related equipment for Prime and third-party customers who lease space there.

Village officials are behind the efforts to attract the tech hub to town, through an intricate assemblage of plots that allows the village to acquire the properties and sell them to Prime. On Tuesday evening, the village council signed a purchase and redevelopment agreement with Prime which provides that the municipality will eventually sell up to six plots to the company for an estimated amount of $ 30 million. Elk Grove owns two plots and continues to acquire the other four.

Officials say they are doing it as part of an overall strategy to attract investment and revitalize the Busse Road corridor, adding that the data center campus will promote village growth, increase property values ​​and generate more. taxes on public services.

“The fact that Prime Data Centers is making this type of investment in our community confirms to us that we are fulfilling our mission of becoming a global destination for high-tech companies and manufacturers,” said Mayor Craig Johnson.

As part of the proposed redevelopment plan, Prime will pay Elk Grove $ 21.3 million once the village acquires two more properties – an office complex at 1500 E. Higgins Road and a retail building at 1700 Oakton St. Officials say they have made deals with the owners, with a shutdown scheduled for no later than Dec. 1.

The village already has the former site of the Elk Grove Hotel at 1600 Oakton St. and other office buildings at 1550 E. Higgins Road.

Overall, the first phase of development offered by Prime requires three data centers and a ComEd substation.

A potential phase two would include a building materials company site north at 1520 Midway Court and the Illinois Department of Transportation right-of-way. Prime would pay Elk Grove about $ 8.7 million for these properties, if the village can acquire them first, according to the redevelopment agreement. Officials say negotiations are continuing.

The project is still subject to village building and zoning approvals. The developer plans to file a petition for the rezoning and new subdivision, which will be heard by the planning committee on November 8 and the village council on November 16, with final approval on December 14.

Prime also plans to apply for a Class 6b Cook County tax incentive, which would allow the property to be assessed at lower levels for a dozen years.

A first shovelful of earth is scheduled for May 2023.


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