Lake County is in the middle of one of the more consequential local debates in years, and it's playing out mostly on farmland most residents drive past without a second thought. Large-scale data centers — the kind of AI infrastructure reshaping small towns across the country — have proposed a foothold here, and the county just hit pause to figure out what it means.
I'm Michael Steber, a licensed REALTOR® and Designated Managing Broker with Keller Williams North Shore West, and I get asked about this more than almost anything else lately across Lake County. Here's what's actually happening, and what it could mean for homeowners, buyers, and anyone who lives near a proposed site.
What's Actually Happening
On June 9, 2026, the Lake County Board approved an eight-month moratorium on new data center applications in unincorporated areas of the county, along with a 120-day administrative deferral, while officials study power and water impacts. The catalyst was a proposed campus near Grayslake that could become one of the largest developments in county history — developers have floated designs ranging from 20 two-story, 60-megawatt buildings to several larger 100–200 megawatt "AI factory" buildings, complete with its own ComEd-built substation.
The Case For Data Centers
Local officials and developers make a straightforward pitch, and it's not without merit:
Tax revenue without added school enrollment. Data centers generate substantial property tax revenue for counties and school districts without adding a single student — a rare combination for large-scale development.
Infrastructure investment. Developers often fund substation and grid upgrades as part of the deal, which can benefit surrounding infrastructure.
Construction-phase jobs. Large builds bring a temporary but real boost to local trades and contractors.
State-level incentives. Illinois currently offers a 20-year sales tax exemption for qualifying data center equipment, which is part of why developers are targeting the state at all.
Grayslake's mayor has publicly said residents won't see a difference in their own water or power as a result of the project.
The Concerns Worth Understanding
The pushback isn't just NIMBYism — there are specific, documented concerns driving the moratorium:
Rising electricity costs. The Citizens Utility Board reported ComEd's supply price is running roughly 47% higher than last year, with rising data center demand cited as one driver, alongside grid auction issues at PJM Interconnection. That's a cost every homeowner feels, not just those near a data center.
Water usage, even indirectly. Facilities that avoid municipal water hookups still increase electricity demand at the power plants generating their supply — a water cost that isn't well tracked yet, according to the Alliance for the Great Lakes.
Land-use and neighborhood character. Open farmland becoming industrial-scale campuses next to residential subdivisions raises real questions about noise, aesthetics, and how nearby buyers perceive a neighborhood.
Legal and political uncertainty. Objectors near Grayslake have already signaled plans to challenge approvals in court, meaning the timeline and outcome for any given site remain unsettled.
Wondering how a nearby project might affect your home's value?
Get a free, no-obligation valuation here, or just reach out — happy to walk through what it means for your specific street.
What This Means If You're Buying or Selling Nearby
If you own property near a proposed site, or you're considering buying in that direction, a few things are worth keeping in mind:
Zoning board hearings over the next several months will shape whether, and how, any project moves forward — worth watching if you're close to a site.
Disclosure obligations may apply if a project affects your property directly; this is a conversation worth having with your agent and attorney.
Buyer perception can shift based on proximity to industrial-scale infrastructure, even if the practical impact on day-to-day life is minimal.
Frequently Asked Questions
Are data centers coming to Lake County, Illinois?
Yes — Lake County officials approved an eight-month moratorium on new data center applications in June 2026 to study impacts, following a proposed large-scale project near Grayslake.
Will a data center affect my property value?
It's too early to say definitively. Effects tend to depend on proximity, visibility, noise, and how the local market perceives industrial development nearby. If you're near a proposed site, it's worth a direct conversation about your specific situation.
Do data centers raise electricity bills?
Rising data center demand nationally and in Illinois has been cited as one factor in higher electricity supply prices, alongside broader grid and capacity market pressures. It affects utility customers broadly, not just those near a facility.
Is the Grayslake data center project approved?
Not yet. As of mid-2026, the project remains under review amid the county's moratorium, and opponents have indicated they may pursue legal challenges to any approval.
Have Questions About Your Situation?
Have questions about how this could affect your street, your home value, or a home you're considering buying nearby? I'm always happy to talk it through.
And if you want more of this kind of local, no-spin analysis, subscribe to The Weekly Welcome — my weekly newsletter on Lake County real estate, at welcometosold.com.
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Michael Steber is a licensed REALTOR and Designated Managing Broker with Keller Williams North Shore West, serving Lake County, Illinois. Sources: Lake County Board proceedings, Citizens Utility Board, Alliance for the Great Lakes, and local reporting on the Grayslake data center proposal, as of July 2026.