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Elk Grove mayor touts data centers as cash cows for local government

Soon to begin an unprecedented eighth term in office, Elk Grove Village Mayor Craig Johnson on Thursday touted the benefits of data center developments to the town — the self-proclaimed “data center capital of the Midwest” — because of what they mean for local government coffers.

Elk Grove has 14 of the computer storage sites currently operating, with another 13 planned or in the works, Johnson said during his annual state of the village address Thursday afternoon.

“They are a piggy bank that’s bursting at the seams to help local governments,” Johnson told attendees of the Elk Grove Chamber of Commerce luncheon at Belvedere Banquets. “They pay a lot of taxes. … They create no kids for the schools. Yet they give millions of dollars for each location in property taxes.”

Each site has few employees and requires almost no police or fire services from the village, he added.

  Elk Grove Village Mayor Craig Johnson, from right, chats with Northwest Suburban High School District 214 board President Alva Kreutzer after his state of the village address Thursday. Christopher Placek/cplacek@dailyherald.com

The proposed redevelopment of a portion of WGN radio’s 102-acre transmitter site on Rohlwing Road into a four-building data center campus with ancillary electrical substation will mean $4 million in annual property, electric and water taxes for the village, Johnson said.

It’ll mean another $4 million in property taxes for Palatine-Schaumburg High School District 211 and $3.25 million for Schaumburg Township Elementary District 54.

The plan, proposed by radio station owner Nexstar Media Group in 2022, has faced delays as ComEd works to extend more power to the site, Johnson said.

On the east side of town, Microsoft continues construction on a portion of the sprawling former Busse farm — now, the Elk Grove Technology Park — between Oakton Street and Higgins Road. One data center is up and operating, construction is underway on a second building, and plans have been submitted to village hall for a third building, officials said.

Johnson said the tech giant chose Elk Grove for its location near O’Hare International Airport, as well as the available utilities, fiber optics and water supply, as well as stable local government.

Elk Grove Village has become a hub for data centers in the Midwest. Daily Herald File Photo, 2014

The longtime mayor was unopposed in the April 1 election. Though he flirted with running for higher office in the past, he again ruled it out Thursday.

“I still love doing this. I love being mayor,” he said. “I have the energy, the excitement and the vision.”

Johnson on Thursday also unveiled a new facade improvement grant program for businesses located in tax increment financing districts. The village will match property owners’ investments — up to $150,000 per location — for exterior building upgrades. The village board has agreed to launch the program with $1 million in seed money.

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