Business & Tech

Judge To Hear Motion To Dismiss Lawsuit Over Grayslake Data Center

The lawsuit challenges village approvals for a massive proposed T5 data center campus.

GRAYSLAKE, IL — A Lake County judge is scheduled to hear arguments Friday on a motion to dismiss a lawsuit challenging the Village of Grayslake's approval of a massive $18 billion data center development.

The hearing is scheduled for 9 a.m. Friday before Associate Judge Janelle Christensen at the Lake County Courthouse in Waukegan, according to a media advisory from the Lake County Data Center Opposition Coalition.

The lawsuit, filed July 31 in Lake County Circuit Court by the Preservation of Community Well-being Collective and other plaintiffs, names the Village of Grayslake, T5 Data Centers LLC and Alter Asset Management Company as defendants. The suit seeks to overturn the village's approvals and development agreement for the proposed T5 data center, which could encompass up to 472 acres and 10.1 million square feet.

Find out what's happening in Grayslakefor free with the latest updates from Patch.

Plaintiffs allege the village exceeded its zoning authority, violated due process and violated the Illinois Open Meetings Act. The village has filed a motion to dismiss the lawsuit.

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.

Find out what's happening in Grayslakefor free with the latest updates from Patch.

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.

Following Friday's hearing, attorney Chloe Russell, a plaintiff and Lake County Data Center Opposition Coalition Chairman Michael Smith are expected to hold a press conference outside the courthouse.

The hearing will address the village's motion to dismiss and does not necessarily mean a ruling will be issued Friday.

Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.