T5 Data Centers Acquires Property for Chicago Expansion

Jan. 20, 2020
T5 Data Centers is expanding its operations in the Greater Chicago market with the purchase of a 164,000-square-foot data center shell in the Elk Grove Technology Park.

T5 Data Centers is expanding its operations in the Greater Chicago market with the purchase of a 164,000-square-foot data center shell in the Elk Grove Technology Park in Elk Grove Village, Ill., the company said today.

T5 will develop the building as a data center with 15.4 megawatts of power and 103,000 square feet of white space. Elk Grove Village is adjacent to O’Hare Airport, and its access to regional infrastructure has made it the locus of data center development in the Suburban Chicago market.

“We’re excited to grow in the Chicago data center market where we continue to have tremendous success,” said Pete Marin, CEO of T5 Data Centers. “Elk Grove Village has become a focal point for Chicago data center activity with outstanding Village support, reliable low-cost power, and robust network infrastructure, making it an ideal location for both enterprise and hyperscale cloud companies in need of additional capacity.”

T5 Data Centers has a long-standing track record of developing mission-critical facilities in the Chicago market, where it currently operates three data centers.

Tax Package Boosts Chicago Opportunity

Tenants in the new T5 project will be able to qualify for tax exemptions following the state’s recent passing of a bill providing benefits to data center construction projects. Data center projects now will receive exemptions from state and local sales taxes on data center equipment for 10 years if they invest a minimum of $250 million in the facility and create 20 high-paid full-time jobs.

Chicago is one of the nation’s premier markets for data center services, occupying a central place in America’s geography and mission-critical infrastructure. The Windy City is a major hub for Internet and financial infrastructure, with active communities of data center users and service providers.

Download the full report.

The region has also become a favored location for hosting, colocation and cloud computing companies. Chicago sees strong demand from the enterprise sector as well, both for primary data centers and as backup/disaster recovery facilities.   

New players continue to enter the Chicago data center market, while incumbent providers are adding space to accommodate future demand. RagingWire/NTT Data Centers and Iron Mountain are each building large facilities in Suburban Chicago, where NYI (New York Internet), Element Critical and SBA Communications have entered the market through smaller deals.

Elk Grove Technology Park, formerly known as Busse Farm, was purchased in early 2018 as part of a $1 billion development project led by Brennan Investment Group. The business park is a focal point for regional fiber optic system infrastructure, and spans 85-acres in the O’Hare marketplace.

“Our latest T5 site has all the characteristics that qualify it as being the best comprehensive data center site in the Midwest,” stated David Horowitz, T5 Data Centers SVP.

Experienced Player in Wholesale Development

T5 Data Centers is a 10-year-old company, and was an early player in the market for build-to-suit wholesale data centers, initially focusing on single-tenant facilities for marquee tenants. T5 helped establish western North Carolina as a key data center destination, and soon expanded to Atlanta, Los Angeles, Portland, Colorado Springs, suburban New York, Chicago and Ireland.

In 2014 the company launched its T5FM facilities management arm, which gained strong traction, adding 11 new facilities as clients in 2018.

Last year T5 Data Centers announced an investment from global real estate company QuadReal Property Group, along with plans to create a platform to provide “holistic” solutions for enterprise and hyperscale users. QuadReal and T5 say they will launch a fully-integrated platform to develop, acquire and operate data centers.

About the Author

Rich Miller

I write about the places where the Internet lives, telling the story of data centers and the people who build them. I founded Data Center Knowledge, the data center industry's leading news site. Now I'm exploring the future of cloud computing at Data Center Frontier.

Sponsored Recommendations

Guide to Environmental Sustainability Metrics for Data Centers

Unlock the power of Environmental, Social, and Governance (ESG) reporting in the data center industry with our comprehensive guide, proposing 28 key metrics across five categories...

The AI Disruption: Challenges and Guidance for Data Center Design

From large training clusters to small edge inference servers, AI is becoming a larger percentage of data center workloads. Learn more.

A better approach to boost data center capacity – Supply capacity agreements

Explore a transformative approach to data center capacity planning with insights on supply capacity agreements, addressing the impact of COVID-19, the AI race, and the evolving...

How Modernizing Aging Data Center Infrastructure Improves Sustainability

Explore the path to improved sustainability in data centers by modernizing aging infrastructure, uncovering challenges, three effective approaches, and specific examples outlined...

NicoElNino / Shutterstock

How Can Data Center Managers Handle Explosive Growth Driven By AI and ML?

Marc Caiola, Vice President of Global Data Solutions at nVent, explains how leveraging the right cooling and power technologies can help data centers manage the growth of AI and...

White Papers

Dcf Sesr Cover 2022 05 19 10 38 01 231x300

The Software-Defined Bottom Line

May 23, 2022
Over time, data center infrastructure has become infinitely more complex and more distributed. This special report, courtesy of Schneider Electric, explores the evolution of software...