Microsoft begins data center construction in Elk Grove

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Microsoft has started construction on a $123 million data center campus in Elk Grove Village near Chicago, reports Data Centre Dynamics.

The 37-acre plot in the Elk Grove Technology Park has enough space to hold three data center buildings totaling 400,000 sq. ft. (37,000 sq. m.).

The park is a $1 billion development near Chicago’s O’Hare Airport, owned by Brennan Investment Group

Crain’s Chicago Business reports that Microsoft paid $52.3 million for 37 acres within the technology park, while T5 Data Centers has acquired a new 164,000-sq. ft. building for $29 million, according to state real estate filings.

T5 data center
The building housing the T5 Data Center

Crain’s suggests that the deals may also be an early sign that state tax breaks for data centers approved last year are having their desired effect. The measure, part of a $45 billion state capital bill, provides a sales-tax exemption and income-tax credits for companies that invest at least $250 million in new data centers in Illinois.

The incentives “make Illinois one of the low-cost markets to site and lease a data center,” said Todd Bateman, a CBRE executive who handles leasing for Brennan at the Elk Grove development. “We have seen an accelerated interest in putting down data centers in Illinois,” the business publication quoted him as saying.

“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,” Pete Marin, CEO of Atlanta-based T5, said in a statement about its acquisition.

T5 will build out its data center in a 164,000-sq. ft. structure at 200 Innovation Dr.

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