Grayslake Residents File Lawsuit Against Data Center Project

Opponents of a data center development in Grayslake have taken legal action against the village and project developer T5 Data Centers, along with landowner Alter Asset Management Company. The lawsuit, driven by critics of the project, calls for the invalidation of previous approvals and agreements. The Alter Group sold the property to T5 in 2024. Michael Alter, leading the real estate firm, also owns the Chicago Sky women’s basketball team.

The Lake County Illinois Data Center Opposition Coalition, formed to combat the Grayslake project, announced the lawsuit during an educational event on Wednesday evening. This announcement was welcomed by attendees. The plaintiffs, represented by the Preservation of Community Well-being Collective, are residents and property owners in Saddlebrook Farms, Grayslake, Mundelein, and Round Lake Park. They seek various legal remedies, including a declaration to render the 2024-2025 approvals void, a judgment to vacate those approvals, and an injunction preventing Grayslake from issuing further permits to T5.

Michael Smith, co-founder of the opposition coalition, emphasized their strong legal position. He expressed optimism about the court’s support, stating, “We’re hopeful the courts will agree with us and take the steps that we’re requesting.” Smith shared this during an educational forum on August 5, specifically addressing opposition to the T5 data center. The coalition has sought legal means to prevent the project’s development.

The Grayslake lawsuit is not isolated. Chloe Russell, the attorney for the Lake County residents, has been collaborating with similar groups in Joliet and Yorkville, where a lawsuit settlement was recently reached. Grayslake’s Mayor Elizabeth Davies acknowledged on Friday that the village had not yet been served with the lawsuit. T5 CEO Pete Marin indicated the company’s legal readiness, affirming their adherence to regulations. Marin commented, “Our goal is to bring a great facility to the region that will… deliver substantial new taxes and fees to the benefit of Grayslake Village and Lake County.”

A part of the Wednesday event was dedicated to informing the community about potential health and environmental risks associated with the data center, as well as advocacy training. Residents voiced concerns about air pollution from diesel generators, risks of soil and well-water contamination, and noise pollution. Some criticized Grayslake for insufficient transparency and public engagement, accusing the village of initially misleading the public about the development nature.

Grayslake’s response to these accusations includes assurances from Davies that the site, a 640-acre business park called Cornerstone, has always been intended for such a use. The plan only required minor modifications to host the data center. Political ramifications may arise from this public backlash, demonstrated by a Grayslake resident’s candidacy against incumbent trustees in 2027.

Smith highlighted T5’s concern over public opinion, noting surveys commissioned by a public relations firm to gauge community sentiment. Following community feedback, T5 withdrew a request to fill in nearly 16 acres of wetland. Marin explained this decision as a response to public concerns, stating, “We have a 20-year history of working collaboratively with communities.” However, some opponents perceive the withdrawal as a distraction from ongoing environmental risks.

The Lake County Stormwater Management Commission meeting on Thursday saw residents question the project’s environmental impacts. SMC chief engineer Brian Frank explained that T5’s application to the U.S. Army Corps of Engineers was closed due to non-fulfillment, with future reviews depending on potential impacts on isolated wetlands that fall under local jurisdiction. As the project progresses, ensuring proper drainage into wetlands remains a priority.