Microsoft pays $42M for Hoffman Estates spec industrial site

30-acre site expands tech giant’s Chicagoland presence

Microsoft CEO Satya Nadella and 2625 Barrington Road (Getty, Prairie Ridge Development Group, LLC)
Microsoft CEO Satya Nadella and 2625 Barrington Road (Getty, Prairie Ridge Development Group, LLC)

Microsoft spent $41.5 million on a 30-acre speculative industrial site in Hoffman Estates to expand its Chicagoland data center operation.

The Redmond, Washington-based tech giant bought the site from an LLC that shares an address with Elmhurst-based Prairie Ridge Development Group in a deal executed on Feb. 10 and recorded on March 3, according to Cook County public records. 

A representative for Microsoft did not respond to questions about the acquisition and its plans for the property.

The acquisition is adjacent to the 53-acre site where Microsoft plans to build two 207,000-square-foot data centers, both of which have been approved by the village and one that is under construction, according to the Daily Herald. Hoffman Estates village officials reportedly haven’t received specific proposals for the land’s use. 

Sign Up for the undefined Newsletter

Microsoft’s latest purchase appears to include a 250,000-square-foot industrial property built by Prairie Ridge in partnership with Oak Brook-based Yampa Investments, according to the developer’s website. Prairie Ridge completed shell construction on the property in January 2022. The developer did not respond to a request for comment. 

Read more

Metro Edge's Craig Huffman and a rendering of the data center (Metro Edge)
Data center gets ground lease in Illinois Medical District
Mark Zuckerburg and the data center in the city of DeKalb (City of DeKalb, Getty)
Meta doubling data center to Illinois’ largest for $1B
Data center developers face tougher competition in Chicagoland with warehousing rise

The Chicago-area market for data centers — facilities that house back-end IT systems such as mainframes, servers and databases for companies — tightened in 2022, according to a mid-year report from JLL. The August report, the most recent analysis available from the brokerage, predicted pricing for the centers to spike in 2023 due to much of the data center space across the suburbs already being spoken for, but to even out in 2024 with several projects being delivered, per JLL.

Facebook parent Meta put $1 billion into more than doubling the size of a data center in DeKalb to 2.4 million square feet back in April, and another $1 billion project from Prime Data Center also got underway in Elk Grove Village around the same time. In the city, Metro Edge Development Partners plans to build a data center on a two-acre parcel in the Illinois Medical District, the firm announced during the fall.

Recommended For You