Chicago/ Real Estate & Development
AI Assisted Icon
Published on September 14, 2023
Data Center Expansion in South Loop Sparks Outcry from Chicago NeighborhoodSource: Google Street View

Residents in Chicago's South Loop neighborhood are voicing their opposition to a data center expansion project proposed by Digital Realty near McCormick Place. According to Block Club Chicago, Digital Realty first pitched the $500 million expansion in June 2022, which would consist of a 13-story, 565,069-square-foot building connected to an existing facility at 350 E. Cermak Ave. The firm currently operates ten data centers in the Chicago area and 275 worldwide.

Despite assurances from Digital Realty and city officials that the expansion's environmental impact would be minimal, neighbors cite concerns over noise, pollution, and potential negative effects on property values. As reported by Crain's Chicago Business, a petition opposing the project has been launched, garnering 685 signatures as of Tuesday, September 12th, with residents urging others to contact Ald. Pat Dowell to express their dissent.

During a recent community meeting, Digital Realty shared the results of their air-quality assessments and noise modeling. Company representatives stated that cooling towers would operate at a maximum 80 percent capacity to reduce noise, and sound attenuators would be installed in generator rooms. Additionally, the company plans to implement a closed-loop water cooling system and aims for Silver LEED certification for the expansion, reported Crain's Chicago Business.

However, nearby residents remain unconvinced, raising concerns about the energy consumption and electronic waste generated by data centers. Some, such as Chess Lofts resident Tina Feldstein, have experienced firsthand the impacts of living close to a data center, including constant noise from fans and pollution in the form of black dust. Feldstein is the founder of the Prairie District Neighborhood Alliance and one of the leading voices in the fight against the data center expansion.

Similar opposition to data centers has emerged in other states, including Virginia and Arizona, with communities rallying against their construction due to concerns over noise and pollution. Although Digital Realty commits to working closely with local communities to address these concerns, South Loop residents remain skeptical.

Dr. Angela Ingram, another South Loop neighbor opposing the expansion, stated that it is essential for the community to press for ethical policies that protect the environment and residents' well-being. She cited events in Virginia and Arizona, where concerted efforts by the community led to politicians implementing policies to restrict or govern data center placement and operations.

Ald. Pat Dowell has yet to make a decision on whether to support or oppose the proposal, stating in an email to Crain’s that she is currently weighing the input from neighbors, developers, and relevant city departments.

South Loop residents argue that the proposed location for the expansion, in a residential area, is not suitable for a data center and that alternative sites away from residential neighborhoods should be considered. Several residents also express a preference for mixed commercial use or hospitality projects over a data center expansion, as they believe this would add more value to the neighborhood.

Chicago-Real Estate & Development