What's Happening?
Digital Realty, an Austin, Texas-based data center developer, plans to demolish the long-vacant Atrium Corporate Centre at 3800 Golf Road in Rolling Meadows, Illinois, to construct a new data center and a ComEd substation. The proposed data center will
be a three-story brick and masonry building housing 156 megawatts of critical power, supported by a two-story, 240-megawatt ComEd substation. Digital Realty acquired the 40-acre site in September for $81.5 million. The city council of Rolling Meadows has already approved zoning code changes to permit data centers in this manufacturing-zoned location and has taken initial steps towards granting other necessary zoning relief. City officials support the plan as a means to repurpose an underperforming property and attract new economic activity.
Why It's Important?
This redevelopment marks a significant shift for Rolling Meadows, as it will host the city's first data center, transforming a long-vacant office complex into a high-tech industrial asset. The project addresses the growing demand for data center capacity in the Chicago metropolitan area, driven by cloud services and digital transformation. For the city, it represents a substantial economic development opportunity, converting an underutilized property into a productive asset that generates tax revenue and potentially creates jobs. The city's proactive approach in adjusting zoning laws and supporting the project highlights a growing trend among municipalities to attract data center investments, recognizing their economic benefits and relatively low impact on traffic and emissions compared to other industrial uses.
What's Next?
The Rolling Meadows city council's preliminary vote on zoning relief is pending a final tally on November 24. If approved, Digital Realty will proceed with the demolition of the existing office building and commence construction of the data center and ComEd substation. Work on the project might not begin until 2029, according to a preliminary timeline. The successful implementation of this project will depend on securing all necessary permits and ensuring the robust power infrastructure from ComEd is in place. The development is expected to contribute to the city's tax base and attract further investment in the area, potentially influencing other property owners along the Golf Road corridor to consider similar redevelopments.
Beyond the Headlines
The conversion of a vacant office complex into a data center in Rolling Meadows illustrates a broader trend of repurposing obsolete commercial real estate for new, high-demand industrial uses. As traditional office spaces face challenges, data centers offer a viable alternative, driven by the insatiable demand for digital infrastructure. This project also highlights the critical role of power infrastructure in data center development; the previous owner faced challenges due to a lack of clear power access, which Digital Realty has seemingly resolved with the planned ComEd substation. The city's support, driven by economic development goals and the recognition that data centers produce less noise, traffic, and emissions than other manufacturing uses, could serve as a model for other suburban areas looking to revitalize their industrial corridors.
