Lake County Approves 8-Month Moratorium on Data Centers in Unincorporated Areas

LIBERTYVILLE, Ill. — The Lake County Board approved an eight-month moratorium on Tuesday that will pause the county's review of any new data center applications in unincorporated areas until May 11, 2027, giving officials time to study the emerging land use and develop appropriate regulations.

The board amended Chapter 151 of its Code of Ordinances to establish the moratorium and to create a formal legal definition of a data center. The ordinance is in effect immediately.

The action came just a week after the Village of Grayslake granted the first building permit for the T5 @ Chicago IV data center campus, allowing construction to begin on an 800,000-square-foot facility as part of a 472-acre development that could eventually span more than 10 million square feet. The moratorium does not affect that project or any data centers proposed or approved inside municipalities.

Lake County has not received any proposals to develop a data center in its unincorporated areas, county officials said.

"This is a critical step in making sure Lake County is prepared to address data centers responsibly by taking the time to do the research, listen to our communities and develop regulations that reflect Lake County's priorities," Lake County Board Chair Sandy Hart said.

During the public process, the county received more than 1,200 online comments, and the Zoning Board of Appeals held a public hearing on August 18 at the Central Permitting Facility in Libertyville. Residents filled the meeting room and hallway, and roughly two hours of testimony was taken. The zoning board voted 6-0 to recommend the amendments.

District 16 Board Member Esiah A. Campos, who pushed for the measure, said the rapid growth of data center development raises questions about land use, energy and water demands, infrastructure, noise and environmental impacts.

"People deserve to know what is being proposed in their own backyard before decisions are made, not after," Campos said. "At the end of the day, we choose our citizens."

PBZ&E Committee Chair Marah Altenberg said residents made clear they want a thoughtful and deliberate approach to data center development. "It's our duty to leave no stone unturned by asking the right questions, examining the potential impacts and considering all of the factors that will help us make the best decisions for our communities," she said.

The ordinance defines a data center as a facility, or part of a facility, that houses computer or network equipment, servers, appliances and the associated mechanical, electrical, cooling and backup power infrastructure used to collect, store, manage, process and transmit digital data. The definition covers both standalone buildings and multi-building campuses and specifies that data centers are distinct from general industrial, office or warehouse uses.

The moratorium is set to lift on May 11, 2027, but could end earlier if the county board adopts new data center regulations before then. County staff will use the time to develop definitions, zoning classifications, performance standards and review procedures for data centers.

The county said it also intends to develop a framework that can serve as a resource for surrounding communities as they consider how to address data center development within their own jurisdictions.

The T5 campus in Grayslake, approved by the village last year after public hearings, has drawn months of opposition from residents. The site has an electrical demand of approximately 1.55 gigawatts, and village officials said the project marks the start of an expected $18 billion private investment projected to generate $1.4 billion in property tax revenue over 20 years without local tax incentives or TIF subsidies. A lawsuit filed on July 31 by Lake County residents names the Village of Grayslake, T5 Data Centers, LLC and Alter Asset Management Company as defendants and asks the court to void the development agreement and bar further permits.