The development of the Grayslake T5 data center could soon face a legal challenge after a local opposition group issued a litigation hold against the village.
According to Chloe Russell, an attorney representing the Lake County Data Center Opposition Coalition, the group recently sent the hold to the village, and she anticipates a lawsuit will move forward in the coming months.
Russell is also working with similar groups in Yorkville and Joliet regarding data center projects in those communities.
Grayslake Mayor Elizabeth Davies confirmed the village had received a notification regarding litigation. No lawsuit regarding T5 had been filed against the village as of Friday, she said.
T5 @ Chicago IV, the second-largest data center project ongoing in Illinois, has become a political hotspot in Lake County, joining a broader debate on the state and even national stage as resistance grows against such developments.
The potential 10 million-square-foot data center campus is planned for the village’s “central range,” a region of farmland Grayslake has envisioned for development going back decades.
T5 Data Centers CEO Pete Marin previously indicated the data center campus could include up to 20 buildings, with the first going up as soon as 2027, with a full build-out as early as 2029. The investment is in the billions of dollars.
The controversy has sparked concerns for leaders across Lake County, and various officials have publicly and privately begun distancing themselves from the project. County Board member John Wasik, whose district includes Grayslake, put out a statement saying he had “nothing to do” with the data center’s approval, and that it was the “sole decision” of the Village Board.
“They didn’t consult with me nor anyone with the county,” Wasik said.
And Esiah Campos, District 16, posted a flyer online saying he was against any data center projects in the district and would oppose the use of county resources for their construction.
At the county level, the Planning, Building, Zoning and Environment Committee approved a moratorium on data centers in unincorporated Lake County at its June 3 meeting, although that will not impact the T5 project.
A committee memo noted the “increasing scrutiny” and “concern” data centers have begun to receive. The county lacks established regulations for data centers, and the memo called for a “comprehensive evaluation” to develop such regulations, with a moratorium in the meantime.
‘Take their ball and go home’
Michael Smith, a Barrington-area resident, is a co-founder of the Lake County Data Center Opposition Coalition. The T5 development moved forward with a “cloak of secrecy,” he alleges, concealing the full extent and nature of the project.
According to Smith, the coalition’s ultimate goal is for the developer T5 to see “the juice isn’t worth the squeeze,” and to “take their ball and go home.” He argues that the data center is not supported by the majority of people in the area.
Although the legal paperwork has yet to be filed, Russell said there are a few issues on which the group is focused. When the project was getting its approvals, she claimed the notices put out by the village were vague, lacking descriptions that would have notified the public that a data center was being considered.
She also said T5 is “wholly inconsistent” with the village’s comprehensive plan and sustainability plans. The coalition had requested any third-party studies the village has conducted on potential impacts, such as on water consumption or lighting.
Army Corps
Also in question for the T5 development are 15.75 acres of wetland on the site that may fall under federal jurisdiction. T5 had sent a permit application earlier this year to the U.S. Army Corps of Engineers to permanently fill in the wetlands.
According to T5’s application, obtained from the USACE through a Freedom of Information Act request, the impacted wetlands would be mitigated into a stewarded area, although that location is still in process, the application said.
In response to the application, the USACE said the project’s soil erosion and sediment control plan would require review by the Lake County Stormwater Management Commission.
According to Brian Frank, chief engineer with the Lake County SMC, the county has not yet received an application regarding the wetlands on the Grayslake site. He said SMC is aware T5 plans to make such an application after a public comment period, and he doesn’t expect an application to SMC until a month from now.
According to Frank, Grayslake is a certified community that would “likely” be the main permit authority for the development regarding drainage and detention. SMC might get involved in reviewing a base flood evaluation, if required, or if the USACE determines the impacted wetlands are under Lake County’s jurisdiction, he said.
Despite growing resistance, Davies remains committed to the project.
Her job is “to protect and help the residents of Grayslake,” she said, “not necessarily just reacting to the cause of the day.”
Davies has given previous statements noting the benefits the development will bring — including $300 million in tax revenue to the area over the coming decades — while having minimal impact on the village’s services and infrastructure.
She’s also argued that the area has been envisioned for development for many years.
In 2009, the village approved Cornerstone of Grayslake, a 640-acre business park meant to incorporate “light industrial, research and development, office retail and residential,” according to the village website.
According to village documents going back to Nov. 14, 2024 — when the proposed T5 development was about 225 acres total between two properties — only minor planning steps were required to accommodate the data center campus.
In response to criticisms about transparency, Davies said the village has followed “all of the open meetings acts,” and that everything has “been filed appropriately.”
The issues those in opposition are discussing, she argued, are on the state and federal level, not the municipal. AI regulation and concerns over the electric grid are not under the control of Grayslake, she said.
