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‘Project of Unprecedented Scale’: Lake County Residents File Lawsuit to Block 472-Acre Data Center Campus in Grayslake

A lawsuit was filed last week by Lake County residents and a corporation seeking to block the development of the T5 @ Chicago IV data center campus in Grayslake, which was given approvals in 2024 and 2025 by the Grayslake Village Board. | Provided Rendering
A lawsuit was filed last week by Lake County residents and a corporation seeking to block the development of the T5 @ Chicago IV data center campus in Grayslake, which was given approvals in 2024 and 2025 by the Grayslake Village Board. | Provided Rendering

GRAYSLAKE, ILLINOIS — A legal battle is underway in Lake County as a coalition of local residents and a newly formed corporate entity file a lawsuit to halt the development of the massive T5 @ Chicago IV data center campus. Plaintiffs argue that the sprawling 472-acre project was pushed through without proper public disclosure or transparent deliberation.

Challenging the Grayslake Village Board Approvals

Filed in the Lake County Circuit Court by the Preservation of Community Well-being Collective LLC and nine local residents, the lawsuit targets approvals granted by the Grayslake Village Board between 2024 and 2025.

The legal challenge asks the court to declare these approvals invalid, void the underlying development agreement with T5 Data Centers, and permanently block the village from issuing further permits based on the decisions.

Core Allegations in the Lawsuit

  • Inconsistency with Local Plans: The complaint asserts that the massive data center project contradicts Grayslake’s Comprehensive Plan, Sustainability Plan, and local Zoning Ordinances.

  • Lack of Transparency: Plaintiffs allege that village officials failed to provide the necessary public participation and reasoned deliberation required by Illinois law.

  • Cross-Border Impact: Several individual plaintiffs reside directly across Alleghany Road from the site in the Saddlebrook Farms community of Round Lake Park, meaning neighbors from outside Grayslake were heavily affected without having a procedural voice.

Developer Response and Developer Suspension

The legal action follows mounting community pushback over how a village of just over 20,000 residents could approve industrial infrastructure of this magnitude using zoning tools typically designated for standard commercial projects.

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Current Status of the Project

  • Wetlands Permit Suspended: Just before the lawsuit was officially filed, T5 CEO Pete Marin announced that the company had temporarily suspended its wetlands permit application with the United States Army Corps of Engineers.

  • Community Engagement Claims: While the developer’s consultants previously noted “broad community acceptance” in federal filings, local homeowners continue to push back to protect their local water, air, and community well-being.

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