Grayslake T5 projects $1.4 billion in non-homeowner property taxes

Grayslake’s preliminary estimate projects $1.4 billion in non-homeowner property-tax revenue for local taxing bodies during the first 20 years of its approved T5 data-center campus. The Village of Grayslake FAQ, updated Aug. 18, says the estimate uses tax rates included in 2026 tax bills and may change or be refined. It is projected revenue, not money already received or guaranteed.

The village identifies schools, parks, first responders, forest preserves and other local governments as potential recipients. It estimates nearly $100 million annually for benefiting districts after the first 20 years, with that figure applying at full build-out, according to the Daily Herald.

Construction and court challenge

Foundation work was underway on the first building, which the Daily Herald described as 800,000 square feet, in its Oct. 3 report. The campus was approved in 2024 and early 2025, according to the village FAQ. The village says the development agreements provide no village financial incentives or tax abatements, and that the developer will pay all property taxes owed under law.

The newspaper reported that opponents are challenging village actions in court and seeking to stop work, invalidate approvals and void the development agreements. It also reported that the village filed a motion to dismiss; the article did not identify a court ruling. Michael Smith, chair and co-founder of the Lake County Data Center Opposition Coalition, criticized the village’s publicity effort as coming after the fact. The Daily Herald attributed to Smith the coalition-backed lawsuit’s claim that residents were not properly informed or engaged during approvals. Those are opponents’ claims, not court findings.

Plans and resident outreach

The village FAQ describes the latest plan as 473 acres, with 11 buildings totaling 6.75 million square feet, 33% less building space than previous plans. A Daily Herald photo caption describes an eventual 18-building campus over 472 acres. The two accounts differ on the project’s dimensions.

The Daily Herald reported that village officials posted a video narrated by Mayor Elizabeth Davies, sent postcards directing residents to the FAQ and used meeting fliers with QR codes. An August special public meeting at the College of Lake County was canceled by the college because of security concerns.

The village planned a resident survey about a possible recreation center, while staff studied its feasibility, scope, design, potential partners and locations. The village is also considering using utility-tax revenue to offset expected municipal-service costs for homeowners or make annual payments to Grayslake households. Neither option has been adopted as a commitment.

The approved T5 campus is in Grayslake.