ComEd, Compass Datacenters Kick Off New, State-of-the-Art Data Center to Transform Former Sears Headquarters Site

Rhea-AI Summary

ComEd and Compass Datacenters have launched a major data center project at the former Sears Headquarters in Hoffman Estates, Illinois. This project represents a $10 billion investment, aiming to meet the region’s growing digital needs and revitalize the area. The development will feature five hyperscale data centers and create around 1,000 jobs during its multi-year construction period starting this year. ComEd will provide infrastructure enhancements, including a new onsite substation set to be operational by mid-2026. The project emphasizes sustainable practices, utilizing technologies like CarbonCure and water-free cooling. Compass CEO Chris Crosby highlighted the company’s methodical approach to sustainable building. The initiative is expected to bolster the local economy and support the region’s digital infrastructure growth.

Positive

• A $10 billion investment in Hoffman Estates.
• Creation of approximately 1,000 jobs during construction.
• Development includes five hyperscale data centers.
• ComEd to provide infrastructure upgrades, including a new substation.
• Utilization of sustainable practices, like CarbonCure technology and water-free cooling.
• Revitalization of the former Sears Headquarters site.
• Boost to local economic activity and digital infrastructure.

Negative

• Project involves a multi-year construction period, potentially causing prolonged disruption.
• Dependence on ComEd's infrastructure upgrades, with the substation only operational by mid-2026.
• Potential risks related to the large-scale demolition and construction process.

Insights

Financial Analyst

Financial Implications: The investment of $10 billion into the Hoffman Estates area can have a substantial impact on the local economy. As data centers demand considerable energy and resources, ComEd's infrastructure upgrades, including a new onsite substation, reflect its strategic commitment to supporting this project. From an investor's perspective, this could indicate a sustained revenue stream for ComEd, as well as potential long-term growth opportunities.

Job Creation: The project will create approximately 1,000 jobs during its construction phase, which can boost local employment rates and consumer spending, indirectly benefiting nearby businesses and the broader community. This job creation can drive further economic activity, positively impacting the real estate and service sectors.

Revenue Generation: The data center's operations might lead to significant property tax revenues for the local government, helping fund public services and infrastructure improvements. Additionally, the presence of a major data center can attract other technology companies to the region, further augmenting economic growth.

Rating: 1

Tech Expert

Technological Impact: The new data center's use of cutting-edge technologies such as CarbonCure for sustainable concrete and water-free cooling systems positions it at the forefront of technological innovation. These advancements not only align with global sustainability goals but also reduce operational costs in the long term. For tech companies, this can mean lower environmental impact and enhanced efficiency.

Scalability: The modular design plans for the data center allow for rapid expansion and scalability. This flexibility can cater to growing digital needs without significant additional infrastructure costs, making it an attractive proposition for companies requiring scalable solutions.

Reliability and Redundancy: Data centers depend on uninterrupted power supply and robust infrastructure. ComEd's commitment to reliable and clean energy provides a strong foundation for the data center's operations, ensuring minimized downtime and enhanced reliability – critical factors for tech-dependent businesses.

Rating: 1

Market Research Analyst

Market Trends: The increasing demand for data centers in the Chicagoland area highlights a broader market trend towards higher digital infrastructure investment. This trend is driven by burgeoning digital needs across industries, including cloud computing, e-commerce and big data analytics. Investors should note this growing market segment as a potential area for future investments.

Competitive Advantage: The presence of strong infrastructure, an ideal climate and abundant clean energy gives the Chicagoland area a competitive edge. This advantage, combined with initiatives like the Climate and Equitable Jobs Act (CEJA), positions Illinois as a prime location for data centers, making it attractive for further investments from similar high-growth industries.

Economic Ecosystem: Such substantial investments often create a positive feedback loop, where initial investments spur further growth, attract new businesses and drive innovation. This ecosystem can lead to sustained economic vitality and higher investment returns over the long term for stakeholders.

Rating: 1

​New data center campus to bring new investment to Hoffman Estates and serve region’s growing digital needs

CHICAGO--(BUSINESS WIRE)-- ComEd today joined Compass Datacenters, the Village of Hoffman Estates and area leaders to formally launch one of the largest-ever Illinois data center projects. The new data center campus will be located at the former Sears Headquarters campus, which closed in 2021, transforming the space with a new data center campus projected to bring $10 billion of investment into the area in the coming years.

The new Compass project continues a trend in data center development in the Chicagoland market, with nearly 30 new data centers announcing plans to launch projects in the ComEd service territory in the last five years, powered by the nation’s most reliable electric grid. This growth is boosting economic activity and helping deliver the infrastructure in order to meet growing business technology needs in the area.

"ComEd’s clean, reliable and abundant power is a big reason northern Illinois is among the nation’s fastest-growing locations for data centers, and we’re especially proud to partner with a company that invests deeply in sustainable design," said Gil C. Quiniones, President and CEO of ComEd. "Compass Datacenters will inject new economic life into the former Sears site, and our region’s unparalleled infrastructure will ensure the company can thrive well into the future.”

The new Compass site represents the Dallas-based company’s first data center campus in Illinois, bringing five hyperscale, or high-capacity and scalable facilities, onto the nearly 200-acre site. ComEd is delivering infrastructure upgrades for this project, including a new onsite substation that will be energized in mid-2026 to power the site. The planned Compass site is slated to be one of the largest data centers in Illinois and will create approximately 1,000 jobs during a multi-year construction effort kicking off this year.

“We’re taking a careful and methodical approach to demolition, setting the stage for doing what we do best - building sustainably and building to last,” said Compass CEO Chris Crosby. “We appreciate the opportunity to help build Illinois’ digital infrastructure and serve the state for years to come.”

In addition to being one of the largest data centers to come to Illinois to date, this project will also be one of the most sustainable. Compass will deploy sustainable practices during the demolition and construction process, including reuse of concrete, stone and asphalt from the old Sears campus. Once operational, Compass buildings will leverage patented CarbonCure technology to produce sustainable concrete, water-free cooling, hydrogenated vegetable oil (HVO) fuels for backup emergency power, as well as other sustainable solutions.

“We are thrilled to welcome Compass Datacenters and to have the Village of Hoffman Estates be part of the growing digital economy,” said Mayor William McLeod, the Village of Hoffman Estates. “Working closely with ComEd and Compass, we look forward to bringing this prime site into the modern era.”

The new Compass buildings will be constructed using the latest technologies to reduce greenhouse gas emissions and will be scaled using modular designs to allow for rapid building, meeting the demands of the customers served on site as well as providing safety benefits for local crews.

“We are thrilled to welcome Compass Datacenters to the Chicagoland area,” said Kyle Schulz, Chief Growth Officer, World Business Chicago, and Executive Leader, Greater Chicagoland Economic Partnership. “This significant investment showcases the strength and potential of our region. With world-class transportation networks, a robust business community, and a highly skilled talent pool, Chicago provides an ideal environment for Compass to expand and thrive. This project underscores the economic vitality, innovative spirit, and reliable power that make Chicagoland a prime destination for leading-edge developments.”

In addition to ComEd’s best in the nation reliability, data centers and other high-growth industries are drawn to Illinois due to strong infrastructure, ideal climate conditions, and an abundance of clean energy, with ability to meet 96 percent or more of customers’ energy consumption with decarbonized energy sources today, and plans to reach 100 percent in the future, thanks to the state’s Climate and Equitable Jobs Act (CEJA).

“The Chicagoland area has become a national and global hub for data center growth, which has led to billions of dollars of investment into our local communities, significant property tax revenues, and thousands of union construction jobs. I congratulate Compass Datacenters and the Village of Hoffman Estates on this new development that will help continue that growth,” said Jack Lavin, President and CEO of the Chicagoland Chamber of Commerce. “Our partners at ComEd have been essential to putting in place the infrastructure needed for these companies to thrive in Illinois and will be key to ensuring we remain a leader in the data center space. As tech becomes an increasingly important part of every business, the data center industry will be the foundation that provides the digital infrastructure we need to continue to attract tomorrow’s high-growth sectors.”

Compass is the latest large development to announce its plans for growth in the region, with many projects citing power availability as a driving factor in deciding where to locate. Last year alone, ComEd helped secure 15 new commercial projects, including nine data centers, collectively set to add 4,385 jobs at their facilities and more than $8.6 billion in local investment.

About ComEd

ComEd is a unit of Chicago-based Exelon Corporation (NASDAQ: EXC), a Fortune 200 energy company with approximately 10 million electricity and natural gas customers – the largest number of customers in the U.S. ComEd powers the lives of more than 4 million customers across northern Illinois, or 70 percent of the state's population. For more information visit ComEd.com, and connect with the company on Facebook, Instagram, LinkedIn, X, and YouTube.

About Compass

Compass Datacenters, one of Inc. Magazine’s 5000 fastest growing companies, designs and constructs data centers for some of the world’s largest hyperscalers and cloud providers on campuses across the globe. Our corporate culture is predicated on continual improvement and innovation and has enabled us to marry technology with modern manufacturing methods to enhance our ability to consistently deliver our customer’s projects faster, with no sacrifices in quality. Since our inception, our sustainability efforts have encompassed the entire data center from its design to its post-delivery performance, including the efficient use of land, water-free cooling and a focus on Green House Gas reduction in the materials used to build our facilities and in their operation. Compass embraces a long-term perspective with the financial strength of investors Ontario Teachers’ Pension Plan and Brookfield Infrastructure.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240613791613/en/

ComEd Media Relations

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Source: ComEd

FAQ

What is the value of the investment in the new ComEd and Compass Datacenters project?

The project represents a $10 billion investment.

How many jobs will the new data center project create in Hoffman Estates?

The project is expected to create approximately 1,000 jobs during construction.

When is the new substation for the Compass data center expected to be operational?

The new onsite substation is set to be operational by mid-2026.

What sustainable practices will be used in the new Compass data center project?

The project will utilize technologies like CarbonCure, water-free cooling, and hydrogenated vegetable oil fuels for backup power.

What is the significance of the new Compass data center project for the local economy?

The project will boost local economic activity, create jobs, and support digital infrastructure growth in the region.