T5 Data Centers has made a significant push into the Chicago market with the acquisition of a seven-acre site in Elk Grove Village, known as the ‘Chicago V’ property. This new addition marks an important milestone in T5’s strategy to capitalize on the booming data center market in Chicago.
The development plan for Chicago V includes constructing a 220,000 square foot facility tailored for high-density cloud computing and AI applications. Once operational, it will offer 36 megawatts of critical IT capacity, with an anticipated completion date set for 2028.
This expansion builds on T5’s existing presence in the Chicago area, which already includes established campuses in Grayslake (Chicago IV) and Elk Grove Village (Chicago I and II). Additionally, T5 has a facility currently under construction in Northlake (Chicago III).
David Horowitz, T5’s senior vice president and head of leasing, emphasized the company’s commitment to fulfilling the growing demand for data center space in the O’Hare submarket. He noted that the company has secured utility power with ComEd and is poised to start construction soon to meet this increasing demand from customers.
Chicago’s status as a leading data center hub is underscored by the numerous facilities operated by major industry players like Equinix, Digital Realty, and CyrusOne. Analysts recognize Chicago’s strategic central location, which facilitates low-latency connections nationwide, alongside its solid infrastructure featuring reliable power supply and advanced cooling systems critical for data center operation.
Despite the robust growth in data centers, challenges are emerging, such as rising energy demands. Exelon Corporation CEO Calvin Butler previously forecasted that power consumption driven by AI technologies in Chicago’s data centers could surge by 900%. As the data center vacancy rates remain at an all-time low, the future of the Chicago data center market appears strong, but it will require careful management of energy resources to continue supporting this growth.
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