GRAYSLAKE, IL — A Lake County judge will issue a written ruling by Dec. 30 on a motion to dismiss a lawsuit challenging the village of Grayslake's approval of a massive T5 data center campus, village officials said Friday.
Lake County Circuit Judge Janelle K. Christensen heard arguments Friday morning from attorneys involved in the lawsuit before taking the matter under advisement, according to a statement released by the village following the hearing.
The lawsuit, filed July 31 by the Preservation of Community Well-Being Collective LLC and nine residents, challenges the village's zoning approvals and development agreements for the proposed data center campus, which could encompass up to 472 acres and 10.1 million square feet.
The plaintiffs allege the village exceeded its zoning authority, violated residents' due process rights and failed to comply with the Illinois Open Meetings Act, according to court documents provided to Patch. The village and developer T5 Data Centers are seeking dismissal of the lawsuit, arguing it was filed after the applicable legal deadlines.
In court filings, village attorneys contend the final zoning approval occurred May 6, 2025, and that residents had 90 days to challenge the decision. The lawsuit was filed July 31, 2026, nearly 15 months after the approval.
Attorneys for the residents dispute that the ordinary filing deadline should bar their claims, alleging village officials concealed the nature of the project by using names such as "T5@Chicago IV" and "Cornerstone PUD" on public meeting agendas rather than clearly identifying the proposed data center.
The plaintiffs also challenge closed-session discussions held in May and June 2025, arguing alleged concealment of information should allow their claims to proceed despite the statutory deadlines.
The village maintains the approvals occurred during public meetings and that information identifying the development as a data center was publicly available.
In its statement Friday, the village defended the approval process.
"We remain confident that the village board acted within its authority and followed every required step in approving the project," village officials said.
"We respect residents' right to raise their concerns through the courts," the statement continued.
The village said it would continue providing information on its website but would not comment further on the substance of the pending litigation.
The judge's written ruling, expected by Dec. 30, will determine whether the challenged lawsuit can proceed or whether some or all of the claims will be dismissed.
The legal challenge comes as the development moves forward. In September, the village issued its first building permit for the T5 campus, clearing the way for an initial 800,000-square-foot facility on the Cornerstone property along Peterson Road.
The current development plan calls for 11 buildings totaling approximately 6.75 million square feet, a reduction from earlier plans. Village officials have estimated the project could generate approximately $1.4 billion in property tax revenue for local taxing districts over its first 20 years, while creating hundreds of construction jobs and potentially more than 1,000 permanent jobs once fully developed.
The project has faced opposition from residents concerned about its potential environmental impacts, including water and electricity usage, noise and wetlands. Village officials and T5 representatives have maintained that the development will be subject to environmental safeguards and have emphasized its potential economic benefits.
Sign up for free local newsletters and alerts for the
Grayslake Patch
Patch.com is the nationwide leader in hyperlocal news.
Visit Patch.com to find your town today.