Data Center Rules and Regulations

The following information relates to the City’s rules and regulations regarding data centers, which apply to the proposed Hydrovault development at 2538 S. Wabash Avenue.

From a historical perspective, the e-sports stadium proposal approved by the Chicago Plan Commission and City Council for 2538 S. Wabash Ave. in 2021 ultimately faltered in 2023. For reference, below is a news article outlining the project’s demise: https://chicago.suntimes.com/2023/2/27/23613709/esports-gaming-centers-downtown-chicago-enterprise.

Alderman Dowell’s office, beginning in mid-December 2024, began discussions regarding a revised proposal from the developer/landowner. Their updated plan included a data center and a coffee shop. Once an official request for an administrative adjustment (as a data center was a permitted use in the 2021 planned development) was made by the developer in February 2025, a large in-person community meeting was held at the FAME Center (13th and State Street) on March 19, 2025. The meeting was recorded and is available on YouTube, and the PowerPoint presentation used during the session is linked to the right.

Following that meeting, the 3rd Ward Public Service Office hosted two smaller discussions with nearby residents to address detailed questions related to parking, construction dust, conditions under the elevated train tracks, and compliance with the noise ordinance during construction. The office also responded to constituent emails and provided an update in the April 2025 newsletter.

In May 2025, the project received approval through an administrative adjustment issued by the Department of Planning and Development’s Zoning Division, in accordance with the Chicago Zoning Code. This approval followed the completion of the community engagement process and a favorable assessment from the Chicago Department of Public Health.  A copy of the DPD letter is also linked to the right. In December 2025, the developer made another request to DPD which reduced the number of truck loading bays and in February 2026, DPD issued a second letter (right).

The developer received a building permit in early 2026, and construction is currently underway, with an anticipated completion date of August 2027.

This data center is relatively small compared to traditional facilities and others proposed across the city and state. Compared to the existing data center at 350 E. Cermak, built in the late 1990’s,  which has over 64 generators, the Wabash data center will have 7 generators.  350 E. Cermak operates at over 100 MW and 2538 S. Wabash is expected to operate at 10 MW.  The Wabash data center features a closed-loop cooling system that keeps fluid contained within a sealed circuit, preventing water from being released into the atmosphere. The facility also utilizes high-efficiency compressors and requires fewer generators. Additional technical details are available in the presentation materials.