What's Happening?
A long-vacant 40-acre corporate office center in Rolling Meadows, Illinois, known as the Atrium Corporate Centre, is slated for demolition to make way for the city's first data center. Digital Realty,
an Austin, Texas-based data center developer, acquired the property for $81.5 million from Brennan Investment Group. The proposed development includes a three-story brick and masonry building housing 156 megawatts of critical power, supported by a two-story, 240-megawatt ComEd substation. The city council of Rolling Meadows has taken initial steps to grant zoning relief for the redevelopment, which includes creating a plat for the substation and a separate lot for the data center. City officials support the plan, citing economic development benefits and the need to repurpose vacant or underperforming office campuses. The site's location, bordered by major highways and commercial/industrial users with no residential areas nearby, is considered ideal for such a facility.
Why It's Important?
This development signifies a growing trend in the U.S. of converting underutilized commercial properties into data centers, driven by the increasing demand for digital infrastructure. For Rolling Meadows, the project is expected to bring significant economic activity, transforming a dormant asset into a high-tech facility. The city's proactive approach in approving zoning changes for data centers highlights a strategic effort to attract new industries and generate revenue. The conversion of office spaces, which have seen reduced occupancy in many areas, into data centers offers a solution for urban revitalization and economic diversification. This move also reflects the evolving landscape of commercial real estate, where traditional office demand is shifting, and new uses like data centers are emerging as viable alternatives for large-scale properties.
What's Next?
The Rolling Meadows city council's preliminary vote on zoning relief is pending a final tally on November 24. Work on the project is not expected to commence until 2029, according to a preliminary timeline. Digital Realty has posted a letter of credit to ensure the necessary infrastructure, particularly power supply from ComEd, is prepaid. The project will involve the demolition of the existing 485,000-square-foot office building, which previously housed major companies like AT&T and 3Com. The successful implementation of this project could set a precedent for other municipalities looking to repurpose vacant corporate campuses for data center development, especially given the site's strategic location and the city's support.
Beyond the Headlines
The conversion of a large corporate office complex into a data center in Rolling Meadows underscores a broader shift in urban planning and economic development strategies across the U.S. As traditional office demand fluctuates, cities are increasingly exploring adaptive reuse options for large commercial properties. This project highlights the potential for data centers to serve as anchors for economic growth, bringing in significant investment and creating specialized jobs, albeit with a different employment profile than traditional office spaces. The lack of public opposition in Rolling Meadows, partly due to prior zoning changes and the site's industrial surroundings, contrasts with challenges faced by data center developments in other areas, suggesting that careful site selection and community engagement are crucial for such projects.
