Joliet data center developers withhold $587 million from ComEd

Developers of the proposed Joliet data center have withheld a $587 million payment to ComEd, according to federal court documents.

The dispute centers on a Transmission Security Agreement designed to ensure that the utility does not pass the costs of grid upgrades to other customers. The developers, Hillwood and PowerHouse Data Centers, sent ComEd a token check for $1. They then filed a lawsuit to stall the full payment until the facility is built.

The conflict began shortly after the city of Joliet approved the project in March. At that time, city officials accepted assurances from developers and ComEd that a program was in place to protect the public from bearing the financial risks of the development.

The project is scheduled to occupy 795 acres at the Joliet Technology Center. Plans call for a full-use power draw of 1.8 gigawatts. According to the U.S. Department of Energy, that amount is nearly equivalent to the total generation capacity of the Hoover Dam.

Max Leichtman, director of economic and workforce development for ComEd, said the utility must spend millions of dollars in advance to provide the necessary power. He noted that as of this week, it is not clear that the developers have acquired the land where they intend to build.

Leichtman stated that without the $587 million upfront fee, ComEd would be responsible for the costs to improve the power supply regardless of whether the project is completed. He added that those costs could be passed on to other ComEd customers. The developers have also refused to pay other standard fees that ComEd typically charges industrial customers for new developments.

ComEd says the Joliet project, along with other proposed data centers, would require the utility to build twice its current power capacity. The lawsuit filed by the developers argues that the upfront fees could kill the project. The filing describes the data center as part of a national effort to build digital infrastructure for artificial intelligence.

The developers did not respond to requests for comment. City officials also declined to comment, with a spokeswoman stating that the dispute does not involve the city.