Chicago Issues Full Building Permit for AI-Ready Data Center at 2538 S. Wabash

Full Building Permit Issued for AI-Ready Data Center Project in South Loop

Chicago is moving forward with a major new piece of tech infrastructure. A full building permit has been issued for a purpose-built AI data center project at 2538 South Wabash Avenue, meaning construction can proceed from foundation through completion. The work follows previously issued foundation permits, and marks a significant milestone for advanced computing infrastructure in the city.

The project is being developed by HydraVault and designed by Gensler, with general contractor Power Construction leading construction through the next phases. This facility is engineered to support next-generation computing applications — from AI inferencing and large-scale model training to ultra-low latency financial services computing and enterprise workflows.

What Makes This Data Center Unique

Unlike traditional data centers designed primarily for storage or basic workloads, this new Chicago facility is being built specifically for artificial intelligence workloads. These include high-intensity computing tasks such as AI model training at scale, Real-time inference and analytics, and High-frequency trading and computational finance applications.

Designed with energy efficiency in mind, the center will feature a closed-loop waterless cooling system that reduces both energy use and emissions, helping balance performance with sustainability goals. Its location on South Wabash provides direct connectivity to Chicago’s extensive fiber network, making it an ideal node for latency-sensitive operations.

This kind of infrastructure reflects interest from tech companies and financial firms that require powerful, resilient computing environments near major markets.

Why This Matters for Chicago

Chicago has a long history as a critical communications and data hub, largely due to its central location and dense network of fiber connections linking East and West Coast markets. The issuance of a full building permit for this AI-ready data center underscores Chicago’s emergence as more than just a traditional tech and finance hub — it strengthens the city’s profile in digital infrastructure that supports AI applications and cloud services.

Purpose-built data centers with AI capacity are still relatively rare in urban cores across the United States. Most large facilities have historically been located outside downtown cores or in suburban campuses where land and power are more abundant. The South Loop site bucking that trend shows significant confidence in downtown Chicago’s utility and economic ecosystem.

Construction, Timeline, and Expected Impact

With the full building permit in hand, general contractor Power Construction can now move ahead with public infrastructure work, above-grade construction, and assembly of mechanical systems critical for advanced computing operations. The project is oriented toward delivering robust AI data infrastructure by late 2026 or 2027, positioning Chicago as a competitive center for cutting-edge computing services.

This development also brings construction jobs to the area and adds another dimension to the ongoing densification of the South Loop, which already includes residential, retail, education, and mixed-use investment activity.

How This Fits Broader Trends

Data infrastructure — particularly facilities optimized for AI and machine learning — is among the fastest-growing segments of commercial real estate. Across the U.S., demand for edge computing, cloud services, and AI readiness is driving new construction and repurposing of space to support data-intensive operations.

Chicago’s decision to support a purpose-built AI data center signals that the city is embracing this trend, aiming to attract businesses that rely on next-generation digital infrastructure. This aligns with broader urban strategies focused on innovation, economic diversification, and sustainable growth in an increasingly digital economy.

Stay Connected

Ranked among the top 1 percent of real estate teams in the Chicagoland market, Cory Tanzer and the Cory Tanzer Group are experts in helping buyers and sellers navigate today’s market across Downtown Chicago, the North Shore, and the Western Suburbs. Recognized for their neighborhood expertise in areas like University Village, University Commons, South Loop, and Pilsen, the team helps clients stay one step ahead by understanding where the Chicago market is moving next.