T5 Data Centers Expands Chicago Footprint with New Data Center Acquisition
T5 Data Centers has recently acquired a new data center site in Elk Grove Village, expanding its presence in the high-growth data center market in Chicago. This strategic move is part of the company’s vision to strengthen its position in one of the country’s most important data center markets.
The newly acquired ‘Chicago V’ property, covering seven acres, is specifically zoned for data center use. Development plans for the site include the construction of a state-of-the-art 220,000 sq.ft facility designed to cater to high-density cloud computing and AI applications.
Once completed in 2028, the new facility will offer 36 MW of critical IT capacity, further enhancing T5’s existing footprint in the Chicago area. This expansion will complement the company’s existing data center campuses in Grayslake (Chicago IV) and Elk Grove Village (Chicago I and Chicago II). Additionally, a new facility (Chicago III) is currently under construction in Northlake.
David Horowitz, senior vice president and head of leasing at T5 Data Centers, emphasized the company’s commitment to meeting the growing demand for data center space in the O’Hare submarket. He mentioned that the necessary steps have been taken to secure utility power with ComEd, and construction will commence shortly to address the increasing demand from customers.
Chicago has been recognized as a top data center location in the U.S., with over 70 data centers housing major players like Equinix, Digital Realty, and CyrusOne. Dominika Koncewicz, a senior analyst at Omdia’s cloud services and SD-WAN unit, highlighted Chicago’s strategic central location, low-latency connections across the country, and robust infrastructure as key factors driving its prominence in the data center market.
As data center vacancy rates in Chicago reach an all-time low, the city is expected to witness continued development in the coming months. However, this growth poses challenges, particularly in energy demand. Exelon Corporation CEO Calvin Butler projected a 900% increase in AI-driven power demand for Chicago’s data centers, highlighting the need for sustainable energy solutions in the industry.
In conclusion, T5 Data Centers’ expansion in Chicago reflects the city’s status as a premier data center location in the U.S. With ongoing developments and increasing energy demands, the Chicago data center market is set to experience significant growth and innovation in the near future.
