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After being rejected in Naperville, company could build data center in Hoffman Estates

Posted in AI, BACOG, Daily Herald, Data Center, Hoffman Estates, Intergovernmental agreements (IGA), Land Use, Plum Farm development, Politics, Privacy, Property Taxes, Public Safety, Real Estate, School Districts, Sears, South Barrington on June 1, 2026| Leave a Comment »

The Hoffman Estates plan commissions Wednesday will hear will hear a request to rezone to manufacturing the 186-acre Plum Parms property northwest of Higgins Road and Route 59, potentially a third data center campus in the village. This view looks south towards Higgins Road, with Old Sutton Road at the center of the image. | Joe Lewnard/jlewnard@dailyherald.com

By Eric Peterson | Daily Herald

A company that saw its plans for a Naperville data center rejected in January is now looking to rezone the 186-acre Plum Farms property in Hoffman Estates.

The village’s plan commission will hear the rezoning request Wednesday.

Hoffman Estates Mayor Bill McLeod announced at his state of the village address in February 2025 that Florida-based Karis Critical had bought the property at Higgins Road and Route 59 with an interest in developing the village’s third data center campus.

Now doing business as H.E. Holdings LLC, the property owner is currently only asking for a rezoning from the vacant site’s commercial mixed-use and traditional neighborhood classifications to manufacturing.

If the rezoning is approved, the owner plans to contract with a developer for a detailed proposal.

This news has sparked opposition from residents in nearby Barrington Hills. They have sent letters to the plan commissioners and to state representative Martin McLaughlin, a former Barrington Hills village president.

Article continues here.

Related: “South Barrington Mayor Paula McCombie posts information regarding June 3 Hoffman Estates (Plum Farms) Plan Commission meeting,” “(Plum Farms) NOTICE OF PUBLIC HEARING JUNE 3,” “Hoffman Estates could see third data center campus with sale of Plum Farms property,” “Hoffman Estates approves sewer, water for development of 185 acres west of The Arboretum,” “Hoffman Estates approves tax incentive at routes 59, 72,” “District 220 lawsuit against Hoffman Estates, Plum Farms developers dismissed,” “South Barrington residents sue over Hoffman Estates development,” “Editorial: Listen to agencies that would feel consequences of Hoffman Estates development”

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South Barrington Mayor Paula McCombie posts information regarding June 3 Hoffman Estates (Plum Farms) Plan Commission meeting

Posted in AI, BACOG, Cook, County, Data Center, Ethics, FPDCC, Hoffman Estates, IAA, Intergovernmental agreements (IGA), Politics, Property Taxes, Real Estate, School Districts, Sears, South Barrington, Taxes, Topics Of Interest, Traffic on May 29, 2026| 1 Comment »

“Dear Residents,

I have received emails from residents regarding the Village of Hoffman Estates Plan Commission meeting that is taking place next week.   They are holding a public hearing regarding a proposed rezoning request for M-2.

Sec. 9-9-2. – M-2 Manufacturing District.

A. Legislative Intent. The purpose of the M-2 Manufacturing District is to provide areas for a variety of industrial uses where major transportation networks provide accessibility. This district is intended to be developed in a manner which will minimize potential adverse influences to adjoining districts through the application of performance standards.

B. Permitted Uses.
1. Permitted uses of land or buildings, as hereinafter listed shall be permitted in the M-2 Manufacturing District under the conditions specified. No building or lot shall be devoted to any use other than a use permitted hereunder with the exception of the following:

a. Uses lawfully established on the effective date of this Code; and
b. Special uses allowed in accordance with the provisions of Section 9-9-2-C.
2. The following uses are permitted in the M-2 Manufacturing District:
a. Offices.
b. Research and development facilities.
c. Contractor and construction supply and shops conducted wholly within an enclosed building, including but not limited to plumbing, HVAC, roofing and electrical.
d. Accessory uses, including, but not limited to, the following:

(1) Antennas and communication towers.
(2) Architectural or landscaping embellishments, pools, fountains and bridges.
(3) Public utility installations and public service uses to include requirements for the furnishing of electricity, gas, oil, telephone and television services.
(4) Storage of building materials (during course of construction only).
(5) Temporary buildings for construction purposes only in accordance with the provisions of Section 9-3-10.
e. The following uses are permitted, however, when the property is adjacent to any residential development, the uses shall only be permitted provided all improvements on the M-2 property, including parking and other structures, are set back a minimum of 100 feet from the nearest residential property line:

(1) Wholesale and distribution facilities.
(2) Wholesale florist or greenhouses.
(3) Printing and publishing facilities.
(4) Manufacturing, production, processing, assembly, fabricating, cleaning, servicing and repairing of materials, goods and products.
(5) Mail order facilities.
(6) Packaging and crating facilities.
(7) Warehouses.
f. Data center.

The meeting will take place on Wednesday June 3, 2026, at 6:30 PM at the Hoffman Estates Municipal Building, 1900 Hassell Road, Hoffman Estates, IL.

The request seeks to change the zoning of approximately 186 acres from CMU Commercial Mixed Use and TN Traditional Neighborhood to M-2 Manufacturing District. The property is generally located between Illinois Route 59 to the east, the Canadian National Railway to the west Higgins Road (Route 72) to the south and is across the street from the Woods of South Barrington.

Any residents interested in learning more or providing public comment should make plans to attend the meeting.”

Thank you Mayor McCombie!

Related: “(Plum Farms) NOTICE OF PUBLIC HEARING JUNE 3,” “Hoffman Estates could see third data center campus with sale of Plum Farms property,” “Hoffman Estates approves sewer, water for development of 185 acres west of The Arboretum,” “Hoffman Estates approves tax incentive at routes 59, 72,” “District 220 lawsuit against Hoffman Estates, Plum Farms developers dismissed,” “South Barrington residents sue over Hoffman Estates development,” “Editorial: Listen to agencies that would feel consequences of Hoffman Estates development”

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(Plum Farms) NOTICE OF PUBLIC HEARING JUNE 3

Posted in 220, 300, AI, BACOG, Data Center, Intergovernmental agreements (IGA), Plum Farm development, Politics, Real Estate, School Districts, Sears, South Barrington on May 23, 2026| Leave a Comment »

Image courtesy Joe Lewnard | Daily Herald Staff Photographer, 2019

“Notice is hereby given that the Plan Commission of the Village of Hoffman Estates will hold a public hearing on June 3, 2026 at 6:30 p.m. in the Hoffman Estates Municipal Building, 1900 Hassell Road, Hoffman Estates, IL to consider a map amendment (rezoning) from the current zoning of CMU Commercial Mixed Use and TN Traditional Neighborhood to M-2 Manufacturing District for property generally bounded by Illinois State Route 59 on the east, the Canadian National Railway on the west, Illinois Route 72 (Higgins Road) on the south, and collectively containing approximately 186 acres.

The petitioner of the request is H.E. Holdings LLC (owner).
P.I.N.s: 01-28-301-004, 01-33-100-003, 01-33-100-004, 01-33-103-008, 01-33-103-007

Raj Chhatwani, Chairperson
Plan Commission
Published in Daily Herald May 18, 2026 (332354), posted 05/18/2026″

Editorial note: The notice signs state, “FOR FURTHER INFORMATION, PLEASE CONTACT THE PLANNING AND TRANSPORTATION DIVISION, 847-781-2660, PLANNING@HOFFMANESTATES.ORG.

Related: “Hoffman Estates could see third data center campus with sale of Plum Farms property,” “Hoffman Estates approves sewer, water for development of 185 acres west of The Arboretum,” “Hoffman Estates approves tax incentive at routes 59, 72,” “District 220 lawsuit against Hoffman Estates, Plum Farms developers dismissed,” “South Barrington residents sue over Hoffman Estates development,” “Editorial: Listen to agencies that would feel consequences of Hoffman Estates development”

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AI fuels higher ComEd bills

Posted in ComEd Four, Economy, Hoffman Estates, Plum Farm development, Politics, Sears, Topics Of Interest on July 24, 2025| 1 Comment »

ComEd customers are already reeling from a big jump in monthly electric bill prices. | Pat Nabong/Sun-Times file

Reporting by Brett Chase | Chicago Sun*Times

Buckle up: The multistate electric grid operator PJM Interconnection confirmed Tuesday that power demand continues to be high and that the price of electricity is likely going up next year.

Hot, hot, hot: Electric rates went up June 1. Most customers didn’t see the increases on their bills until this month. A ComEd customer who normally pays about $100 a month on average will see a spike of almost 11% on upcoming power bills.

AI caramba: Power demand across the country has skyrocketed, spurred by artificial intelligence operations and big data centers. Meanwhile, new sources of renewable energy including wind and solar have been slow to get connected to an electric grid that spans from Northern Illinois to the East Coast.

Read more here.

Related: “Hoffman Estates could see third data center campus with sale of Plum Farms property,” “How data centers became the newest growth industry in the suburbs,” ”Done deal: Texas data center firm closes on deal for Sears campus in Hoffman Estates”

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Hoffman Estates could see third data center campus with sale of Plum Farms property

Posted in 220, Audubon Society, BACOG, Cook, County, Daily Herald, FPDCC, Hoffman Estates, Illinois Tollway, Land Use, Plum Farm development, Politics, Property Taxes, Real Estate, School Districts, Sears, South Barrington, Taxes, Traffic on February 22, 2025| Leave a Comment »

The new owner of the 185-acre property at the northwest corner of routes 59 and 72, just west of the Arboretum of South Barrington, wants to build a third data center campus in Hoffman Estates. | Courtesy Plum Farms

By Eric Peterson | Daily Herald

The recent sale of the 185-acre Plum Farms property at the northwest corner of Route 59 and Higgins Road could lead to a third data center campus in Hoffman Estates, Mayor Bill McLeod announced in his State of the Village address Wednesday.

The undeveloped site lies directly west of The Arboretum of South Barrington shopping center. Until recently, plans centered around residential development.

In his annual update before the Hoffman Estates Chamber of Commerce at the Now Arena, McLeod said no formal plans have been submitted, but the village expressed its openness to the possibility of another data center campus.

Read more here.

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Demolition begins on mammoth Sears complex in Hoffman Estates

Posted in Hoffman Estates, Real Estate, Sears, Topics Of Interest on August 14, 2024| Leave a Comment »

By Eric Peterson | Daily Herald

Demolition has begun on the 2.4 million square feet of office space that once served as Sears’ worldwide headquarters in Hoffman Estates.

The campus served as the retail giant’s headquarters between the move from Chicago’s Sears Tower in the early 1990s until the company put the sprawling 273 acres up for sale in 2021.

At its peak, the campus was home to about 9,000 employees. But after the last of them were sent home due to the COVID-19 pandemic in March 2020, none ever returned.

One of the 30 largest structures in the world in terms of square footage, the Sears headquarters is significantly ahead of even the John Hancock and Empire State buildings, according to Jeff Olson, project executive for Carol Stream-based American Demolition.

Demolition continues at the former Sears headquarters Wednesday in Hoffman Estates. | Brian Hill/bhill@dailyherald.com

“It comes but once in a career to demolish a building of this size,” he said back in April, when the project was still focused on removal of interior furniture and equipment.

The site was purchased last year by Dallas-based Compass Datacenters for a $10 billion investment by it and its partners to build five hyperscale data centers — each more than a quarter-million square feet — and provide the supply of electricity they’ll require.

A hyperscale data center is one used by and for a single company, as opposed to a multitenant facility.

Read more here.

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‘A place to last’: Hoffman Estates says goodbye to Sears HQ, hello to Compass Datacenters as redevelopment kicks off

Posted in Hoffman Estates, Property Taxes, Real Estate, Sears, Taxes on June 13, 2024| Leave a Comment »

A rendering of the planned Compass Datacenters campus on the former site of the Sears headquarters in Hoffman Estates. | Joe Lewnard/jlewnard@dailyherald.com

By Eric Peterson | Daily Herald

Though demolition and construction still lie ahead, Thursday marked a significant milestone in the transition of 273 acres in Hoffman Estates from Sears’ corporate headquarters into one of the largest data center campuses in Illinois.

Dallas-based Compass Datacenters hosted a kickoff event on the property, where it plans to invest $10 billion to build five hyperscale data centers — each more than a quarter-million square feet — and provide the supply of electricity they’ll require.

Among the attendees were the CEOs of Compass and ComEd, Hoffman Estates Mayor Bill McLeod, and representatives of community organizations, trade workers, and the seven-county Greater Chicago Economic Partnership.

“We’re super excited to be here,” Compass CEO Chris Crosby said. “These data centers are akin to the highway systems of the past.”

He was among the speakers who addressed the legacy of Sears, but said the goal is to exceed the company’s tenure in Hoffman Estates. The modular design of the data centers makes them easy to update, with a 100 years not out of the question, he said.

“One of our core concepts at Compass is that this will be a place to last,” Crosby added. “The economic effect of this is pretty massive.”

Read more here.

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Preparations start for demolition of former Sears corporate campus in Hoffman Estates

Posted in Hoffman Estates, Intergovernmental agreements (IGA), Property Taxes, Sears, Topics Of Interest on March 29, 2024| Leave a Comment »

Installation of a perimeter fence around the former Sears corporate campus in Hoffman Estates in April will precede its phased demolition to make way for Texas-based Compass Datacenters’ use of the 273-acre site. | Joe Lewnard/jlewnard@dailyherald.com, 2020

By Eric Peterson | Daily Herald

Installation of a perimeter fence and security cameras over the next couple weeks will mark the start of the transformation of Sears’ former 2.4 million square feet of office space into Compass Datacenters’ new 273-acre campus in western Hoffman Estates.

Demolition of the buildings won’t begin for several more months, said Katy Hancock, vice president of community relations for Compass.

She said the buildings will be torn down one by one, with the clearing out of each one’s interior immediately preceding its demolition.

The process is expected to take until mid-2025. In the meantime, Sears’ former Building E on the campus will continue to host training exercises for area police and fire departments for as long as practical, Hancock said.

American Demolition of Carol Stream was selected for the project largely for its proven ability to minimize waste and maximize reuse of materials, she added. Concrete, stone and asphalt will be crushed on site for use as fill-in at the development of Compass’ own data center campus.

Work will be confined to the hours between 7 a.m. and 3 p.m. Monday through Friday until the demolition is complete.

More here.

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How data centers became the newest growth industry in the suburbs

Posted in Cook, County, Hoffman Estates, Real Estate, Sears, Taxes, Topics Of Interest on January 14, 2024| Leave a Comment »

Sears Data Cente

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.

Read more here.

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Done deal: Texas data center firm closes on deal for Sears campus in Hoffman Estates

Posted in Hoffman Estates, Intergovernmental agreements (IGA), Property Taxes, Sears, Topics Of Interest on September 12, 2023| Leave a Comment »

Sears 23

Dallas-based Compass Datacenters closed on its purchase of the 273-acre former Sears headquarters in Hoffman Estates on Tuesday. The village has not yet seen a detailed plan for the property. (Joe Lewnard | Staff Photographer, 2019)

The former Sears campus in Hoffman Estates may now have a promising future to go with its storied past, as Dallas-based Compass Datacenters closed on its purchase of the 273-acre site Tuesday.

The move turns a page for Hoffman Estates and closes the book on Sears’ presence in the Chicago area, from where it helped shape the national retail industry for decades.

“We are very pleased to welcome Compass Datacenters to Hoffman Estates,” Hoffman Estates Mayor Bill McLeod said in a statement. “The redevelopment of the former Sears headquarters into a data center campus begins a new chapter for this high-profile property and continues the technology diversification of our tax base. Although still preliminary, the investment by Compass will be in the billions of dollars and will have positive effects for our community for years to come.”

Representatives of Compass have not responded to requests for comment in recent weeks.

The company is in the process of being acquired by Brookfield Infrastructure Partners LP and the Ontario Teachers’ Pension Plan, according to a news release in June.

But CEO Chris Crosby’s statement at the time alludes to the ambitions demonstrated by Tuesday’s land purchase.

“The industry is at a critical inflection point today with AI and cloud demand continuing to fuel significant growth,” he wrote. “With Brookfield Infrastructure and Ontario Teachers’ strategic expertise and deep financial resources, Compass is ideally positioned to meet growing demand for hyperscale data centers and campuses.”

Hoffman Estates officials haven’t yet received a detailed proposal for the property, but the 2.4 million square feet of office space there seems destined for the wrecking ball.

Read more here.

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