Chicago

Colocation Insights

• Strong demand from large tech and AI-related companies is pushing up rental prices.
• Increased AI-related demand is expected in the second half of the year.
• Almost no large data center space (5 MW or more) is available.

Market Trends

• Getting power to new data centers is taking longer and costing more, especially from ComEd.
• New data center projects serviced by ComEd face power delivery delays until 2031 or later.
• ComEd now requires letters of credit to back its transmission revenue over a 10-year period.
• New data center development is happening in areas outside of Chicago, often targeting large amounts of power (over 500 MW).
• Developers are prioritizing power availability over location for new data center sites.

Notable Activity

• Prime Data Centers leased 72 MW of capacity to an AI-related tenant.
• STACK acquired 17 acres of land in Elk Grove Village.
• Two new data center projects in Yorkville are seeking approval of 38 buildings and 3+ GW of power.
• Karis Critical acquired 180 acres in Hoffman Estates.

Figure 1: Historical Market Information

Figure 2: Historical Supply and Demand

Figure 3: % of Total Primary Market Inventory

Figure 4: Market Fuel Mix

Figure 5: Average Asking Rates