1GW Data Center Campus Planned for Chicago Area
TRACT has entered the greater Chicago market with the acquisition of a 343-acre site planned for a 1-gigawatt data center campus. The move signals a major expansion of next-generation infrastructure investment into the Midwest, which is attracting data center development due to affordable land and reliable power sources.
- The development is situated in Morris, Illinois, within Grundy County, a location that provides strategic access to the Chicago metropolitan area via the I-80 corridor. Grundy County is actively pursuing economic diversification, with a focus on attracting energy-intensive businesses like data centers to build upon its industrial tax base. This positions the TRACT campus within a county that is proactively planning for this type of growth. - Illinois offers significant tax incentives for data center development, which was a key factor in attracting this large-scale investment. Qualifying projects with at least a $250 million investment that create 20 or more high-paying full-time jobs receive a 20-year exemption on state and local sales taxes for data center equipment. Additionally, a 20% tax credit on wages for construction workers is available for projects in underserved areas. - The Chicago area is a top-tier data center market, with vacancy rates falling to just 2.4% in late 2025. This high demand, driven by tech companies and AI firms, has led to an 11% year-over-year increase in rental rates. The TRACT project enters a market with strong fundamentals but also faces challenges, as longer power delivery timelines are becoming more common. - This project will have a significant impact on the I-80 corridor's industrial real estate market, which is already a hub for logistics and distribution. The corridor has seen robust leasing activity, and while vacancy rates have slightly increased, they remain at historic lows. The influx of a major tech infrastructure project like this is expected to further increase the demand for industrial properties in the area. - The construction and operation of a 1GW data center campus are projected to create a substantial number of jobs, driving demand for local housing. A representative 1GW data center project is estimated to generate tens of thousands of temporary construction jobs and hundreds of permanent operational jobs. This influx of workers is expected to put upward pressure on the housing market in and around Morris, creating opportunities for multifamily investors. - For real estate investors, the development signals a need for more workforce housing in the surrounding communities. The Chicago multifamily market is already experiencing rent growth, with a forecasted 3% increase in 2026 due to a shortage of new construction. Suburban multifamily cap rates in the Chicago area for Class A properties have been in the 5.0% to 5.5% range. - Grundy County has been identified as one of the fastest-growing counties in Illinois, with a rising population and a median household income that is 17% higher than the state average. The county's economic development plan is focused on leveraging its location and infrastructure to attract further high-value projects, suggesting a long-term growth trajectory for the region. - The Midwest is increasingly becoming a preferred location for data center development due to lower land and construction costs compared to coastal markets. This trend is drawing in both hyperscale and edge data center facilities, with developers often repurposing old industrial sites, which can revitalize local economies. This broader regional trend enhances the long-term viability of TRACT's investment in the Chicago area.
