Land deal to pave way for largest data center in Elk Grove Village

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Elk Grove Village has purchased the site of a concrete recycling company – the last major parcel needed for what will become the city’s largest data center campus – in a complex process of assembling properties run by the municipality.

The Village’s $16.5 million purchase of the nearly 5-acre Vulcan Construction Materials site at 1520 and 1700 Midway Court follows its previous acquisitions of offices, a retail building and a hotel on northwest corner of Higgins and Busse roads.

The village, in turn, is reselling the land to San Francisco-based Prime Data Centers Corp., which plans to build a $1 billion, 150-megawatt data center campus on two dozen acres at the entrance. from the city.

Village officials have been pursuing the Vulcan site for at least a year, even planning to use their eminent domain powers to acquire it.

But the parties were able to reach a sale price instead of incurring the expense and delays of legal proceedings, according to the 16-page sale agreement approved by the village council this week.

Village officials said acquiring the property would promote increased economic activity in the area and generate up to $4 million a year in property and utility taxes. It would also allow ComEd to add another substation next to the one it opened in late 2021 at 1500 Midway Court.

This substation is essential for the completion of the Prime Data Center development, said Mayor Craig Johnson.

Prime plans to build three 3-story buildings totaling more than 750,000 square feet that would house servers, cables and related equipment for itself and third-party customers who rent space there.


        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        

It would be the 12th data center in Elk Grove and the largest — about double the size of what Microsoft is building across the street at the Elk Grove Technology Park, officials said.

The village is also creating a new tax increase funding district in the Midway Court area to help pay for environmental remediation at the Vulcan site, which contains underground storage tanks of petroleum fuel and a well.

A first-reading village council vote on the ordinances establishing the TIF district took place almost a year ago. A final vote was delayed during negotiations for the Vulcan property. Under the special funding mechanism, property taxes paid to local governments like schools will be frozen at a set level, and taxes collected above that level will go into a village fund to pay for environmental cleanup and other costs.

Johnson said the new TIF district would be short-lived.

Elk Grove must first annex the Vulcan property. A field closure is scheduled for September 1, and Vulcan is expected to vacate the grounds by the end of the year.

A groundbreaking ceremony on the first phase of the data center project is expected in a year.

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