Prime Data Centers, a wholesale data center developer and operator backed by Macquarie Capital, the investment division of Macquarie Group, today announced that it is planning to build a 150-megawatt, 750k sqft hyperscale data center campus in Elk Grove Village (Chicago), Illinois, which will comprise an investment of around $1bn. Notably, Elk Grove Village is a suburb of Chicago, located 20 miles northwest of the city.
Prime Data Centers – Elk Grove Village (Chicago)
Prime Data Centers will acquire from Elk Grove Village ~17.5 acres of real estate which Elk Grove Village owns or is in the process of acquiring. Specifically, this real estate comprises four parcels of land comprising the area north of Oakton Street between Higgins Road and Busse Road. The land parcels include:
- 1600 Oakton Street: former blighted Best Western Midway Motor Lodge on 7.4 acres of land. Presently, Elk Grove Village already owns this property
- 1550 E Higgins Road: office building formerly known as Regent Office Center. Presently, Elk Grove Village already owns this property
- 1500 E Higgins Road: office building of Sears Home Services and Sumitomo Cryogenics, backing on to Midway Court. Presently, Elk Grove Village is in the process of acquiring this property
Prime Data Centers and Elk Grove Village have approved a redevelopment agreement for the construction of three, three-story data center buildings. Elk Grove Village’s Board notes that the buildings will comprise 750k sqft, at minimum, and up to 1 million sqft.
A new ComEd (Exelon Corporation) substation will serve the nearby Elk Grove Village Technology Park.
Prime Data Centers’ project will bring new tax revenues to Elk Grove Village. Indeed, once fully built-out, Prime Data Centers’ facility is estimated by Elk Grove Village to produce $3m to $4m per year in electricity taxes.
Macquarie’s Prime Data Centers will target hyperscale and large enterprises that want access to the Chicago market.
Prime Data Centers – Portfolio
Elk Grove Village, in the Chicago market, is Prime Data Centers’ first facility outside of the state of California. Presently, Prime Data Centers has 160 megawatts of power capacity available to develop as turn-key, build-to-suit (BTS), and powered shell. Particularly, this power capacity will be delivered through its facilities in Sacramento, Santa Clara, and Hayward, California.
In June 2021, Prime Data Centers partnered with Macquarie Capital to target data center investments of $5bn+ (debt and equity), over the next 10 years.
In May 2021, Prime Data Centers agreed to acquire its Santa Clara data center property for $13.9m from Lightstone Value Plus REIT.
Elk Grove Village – Data Center Market
Presently, Elk Grove Village is home to 11 data center companies comprising nearly 3.5 million sqft of facility space. Overall, these data center operators include Microsoft and T5 Data Centers which are located 0.6 miles from Prime Data Centers’ planned development.