Plans to stack another three-story data center on the riverfront in McKinley Park have hit pause, just as they were getting a second life.
QTS has been looking to expand its campus at the former Chicago Sun-Times printing plant on South Ashland Avenue, pitching the new building as a way to boost server capacity for customers across the region. But the city has voided a key construction permit, forcing the company back into parts of the approval maze and giving neighbors a rare breather to press for tougher environmental and infrastructure protections.
The Department of Buildings tossed the permit because the project sat inactive for more than 120 days, according to Block Club Chicago. QTS told the outlet the expansion is meant to keep up with growing customer demand, but the company has not yet said whether it will reapply for the voided permit. Ald. Julia Ramirez (12th) told the publication she worries the city still lacks clear data and transparency on how the project could affect the power grid, water use and air quality over the long haul.
Where the project stood
Before the slowdown, the expansion had already cleared an initial city review last year and was working its way through Chicago's rezoning and permitting process. The plan called for roughly 366,000 square feet of additional data-hall space, plus about 80,000 square feet for offices and loading areas.
Data Center Dynamics reported that the Chicago Plan Commission signed off on the proposal in December 2024, while a summary from the City Council's Committee on Zoning logs the rezoning request and square-footage details in the public record.
What the proposal promised for neighbors
QTS tried to sweeten the deal with a slate of street-level upgrades around the site. In filings and community presentations, the developer sketched out neighborhood-facing improvements such as new parking islands with planters, a welcome garden with bike racks and seating, and safer pedestrian access to the riverfront.
Those design touches were marketed as community benefits bundled with the high-tech expansion, according to Block Club Chicago.
Why the city and region are wary
City Hall has already signaled it is getting more cautious about data center growth. Chicago created an interdepartmental working group last year to study how these massive facilities affect energy demand and the environment, with a directive to come back with monitoring tools and potential standards. That assignment is laid out in the city's data residency ordinance.
The local pause also fits into a broader national pattern. A tally from Data Center Watch, highlighted by Data Center Knowledge, shows communities around the country have delayed or blocked tens of billions of dollars in data center projects as they push for stronger rules and clearer safeguards.
Next steps
Because the permit was voided for inactivity rather than outright denial, QTS can still try again. To move forward, the company will have to restart at least portions of the permitting process and lock in any required zoning changes or City Council approvals before construction crews can break ground, according to industry reports and city documents.
So far, officials have not released a new timeline, and no fresh permit application from QTS had surfaced as of this report. Neighbors say that if the expansion returns to a public agenda, they will push for ironclad conditions on noise, power demand and water use instead of vague promises.
For QTS, the voided permit is an unwelcome delay. For McKinley Park residents and city leaders, it is a chance to renegotiate what a data-heavy future on the riverfront should look like. This story will be updated as new filings, city responses or company statements emerge.
