New data centers from Dallas-based Compass Datacenters are planned for the 273-acre former Sears campus in western Hoffman Estates. | Paul Valade/pvalade@dailyherald.com
By Eric Peterson | Daily Herald
When the restructured Transformco put its former Sears corporate campus in Hoffman Estates on the market two years ago, much head-scratching and debate followed over how its 273 acres and 2.4 million square feet of office space could be re-purposed in a post-pandemic economy.
But when Dallas-based Compass Datacenters closed on its purchase of the site in September, many local leaders and commercial real estate experts regarded its proposed data center campus as a perfect fit.
In a relatively short period of time, the data center industry has strongly established itself in the Northwest suburbs, through existing and ongoing developments in Elk Grove Village, Mount Prospect and elsewhere in Hoffman Estates.
A blend of several factors enabled this, with one in particular lighting the fuse, according to Josh Levi, president of the Virginia-based Data Center Coalition.
“It was the tax incentive in Illinois that unlocked a lot of the growth you’re seeing now,” he said.
Taking effect in 2020, the state’s program offers data center owners and operators a tax credit of 20% on the wages for construction workers on projects in under-served areas. Among the criteria are an investment of at least $250 million over five years and the creation of at least 20 permanent jobs for the operation and maintenance of the facilities.
But that isn’t the only factor allowing Illinois to join the outward growth of an industry initially concentrated on the East and West coasts, Levi said.
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