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Skybox, Prologis Investing $13.7 Million Turning Vacant Warehouse Into Data Center

Elk Grove Village Trustees Grant Project 6B Tax Break; Project Completion By January 2022

By Tom Robb| on February 17, 2021

Elk Grove Village Hall, also known as the Charles Zettek Municipal Complex, (Journal file photo)

Elk Grove Village trustees granted a 6B property tax incentive to a data center developer proposing to invest $13.7 million into a vacant warehouse at 800 E. Devon Ave. at the Feb. 9 village board meeting.

Skybox Datacenters is partnering with Prologis, the owner of the property, to develop a “turnkey data center powered shell” out of the building, which they would then market for tenants.

The 189,000 square foot building sits on a 414,500 square foot property parcel. After renovation work is complete, memos submitted as part of the application said the data center would likely be reoccupied in January of next year.

Those memos say the new data center would employ between 12 and 20 employees along with another six to 10 security employees.

The 6B is granted to AMB Partners II Local L.P.

A 6B property tax incentive lowers property tax rates for a period of 12 years, bringing rates from 25% to 10% for the first 10 years, raising it to 15% in year 11, and to 20% in year 12 before returning property tax rates to 25% in year 13.

Vacant property often has a tax rate at or below 10%. Property taxes are also based on the assessed valuation of a property, which should be raised significantly with $13.7 million in investment to the building.

Elk Grove Village Mayor Craig Johnson pointed to a recent Cushman & Wakefield’s Data Center Advisory Group study ranking top global locations for data centers, published Feb. 9, ranking the Chicago region as the number two location for data centers globally. Within the Chicago region, Johnson said Elk Grove Village represents the majority of data center development.

The Skybox Prologis development is unrelated to a three-building Microsoft data center campus under construction on 36 acres on the east half of the Elk Grove Technology Park.