Tuesday, January 11, 2011

Data Centers - A New Trend in the Sloop?

Yes, there is a lot of empty space in various parts of the South Loop these days. Whether it's high rises with little occupancy or vacant retail spaces, in many places around our neighborhood (and to be fair many other neighborhoods) it ain't pretty.

With all this space, it's been interesting to read about data centers moving into the area. Today we read about a new data center being built at 840 South Canal:
A real estate firm has purchased the Northern Trust building at 840 South Canal street in Chicago, and plans to spend $200 million to convert it into a data center. The former check processing plant in Chicago's south loop was purchased by the Red Sea Group late last month for $35 million from Northern Trust Corp.
It's an interesting trend as we remember reading last year that a new data center was being built at Cermak and Michigan. This is also close to another, older data center at 350 east Cermak that accordingly to this articleis the world's largest data center (see picture).

Most of these data centers are popping up to serve trading companies, which are increasingly relying on fast technology to get a competitive advantage for their business.

The question remains, is this good for our neighborhood? Most of the data centers seem to be popping up in relatively desolate areas (or at least what are currently desolate areas), so one could argue that functioning buildings are better then empty buildings or vacant lots. But it's not like these buildings provide much for the neighborhood in terms of employees eating at restaurants or shopping in the area.

We're mixed on the topic, so what do you think?

22 comments:

Anonymous said...

As an IT professional I can tell you that the Data Centers will not run without people and these employees will be eating in the area. By the way some of these employees might decide to move in the area and these jobs are 100K+ salaries. I personally would not mind walking 3-4 blocks to work....
So vacant building vs a data center I would pick a data center.
Lets face it a call center would be best as they have more employee traffic but we have what we have.

Anonymous said...

Sorry, this isn't a "Check Processing Plant". I've worked in this building for 5 years.

The 840 S. Canal building houses ALL of Northern Trust's Technology operations. Not a single check is processed here (that's FiServ in the Merchandise Mart).

The building is not vacant now, it's just been sold because the maintenance costs are astronomical. They're moving us all to 231 S. LaSalle.

John T said...

Data Center is not ideal; however keep in mind, that down the road, more technology based companies will be setting up shop in the South Loop along with other businesses + (eventually) the Technology Park in the old Michael Reese location that will bring people into the south/south part of the Sloop to have lunch, dinner, etc. The Reese location is only 6-7 blocks away from Michigan/Cermak.

1009 said...

I may be wrong, but I don't think the picture shown here is 840 S Canal. It looks like a building farther south, down by Cermak.

Anonymous said...

Oh - and 1009 is right, that's not 840 S. Canal.

Anonymous said...

Correct, this photo is the American Book Company building at Cermack & Calumet.
http://www.preservationchicago.org/success-story/17

Jim in the Sloop said...

Data centers aren't necessarily benign. They take a lot of cooling, and the one across the street from us has what seems like 5,000 cooling units on the roof which create a lot of noise 24x7x365. Really obnoxious.

Anonymous said...

That’s the old publishing house on Cermak & MLK, and it has plenty of data center equipment inside. I designed data centers and they are massive energy hogs and utilize countless systems for back-up power (diesel generators), HVAC and fire protection (toxic Halon systems)... I wouldn't want to live adjacent to a data center...
Additionally, there are very limited employees that are required to run these huge facilities; I wouldn't expect the local business to be blooming because of them…

John T. said...

Sloopin has the picture correct. The picture is for the Data Center on Cermak. They did not provide a picture of 820. Also, another data center is being built at Cermak/Indiana this year.

Anonymous said...

Data centers employ very little (almost none) actual people. Which is good, because these people wouldn't have many options "to walk to for lunch and dinner" in the sloop. Converting this unique building (RR Donnelly) into a data center is tragic. In any other Lakefront neighborhood this would be converted into condos, lofts, offices, or dining. But not in the sloop!
The noise and power that these new centers generate will further deter any desireable development near these buildings.

Anonymous said...

There are already plenty of creative lofts, condos, offices in the sloop. Also, plenty more space for development. The two spots (820 Canal and E. Cermak are not near heavy residential areas anyway). Both have replaced other BUSINESSES (Northern Trust & RRD), so no loss there. Regarding the minimal noise: the new models have taken this into consideration and in fact will not affect other development (noise or not).

Anonymous said...

I certainly do not support the new Data Center locations chosen, and wish there was some better integration and design. That being said, these locations were chosen primarily for their access to the main data trunks from outside Chicago and to downtown. For the existing RR Donnelley and planned McHugh site on Cermak, their is secret or 'obscurely located' tunnel from the old Chicago tunnel system days that runs to the Central Business District...the tunnel location is known but to a few.

However, compared to normal industry, these guys get away with murder when it comes to permits and restrictions. How in 2010, in downtown Chicago we allow diesel back-up generators when they should be natural gas is beyond me.

Operationally, there is issues with the Cermak Data center noise from their generators powering up at all hours, as they act more like a hotel and let providers install their own back-up generator systems, instead of having a combined system for the entire building (they would only need 5-10% of what they have installed individually).

The proposed McHugh planned data center on Cermak is an abomination, and was quietly pushed through in a rush, using the original 1998 design, without reviewing or updating to keep current with the plans for the land-marked Motor Row. It will be a long blank wall of nothing. And they used the old, we can't have commercial space on ground floor because of security bull. It is not hard to segregate for blast or fire protection.

Anonymous said...

The data center building at Harrison & Federal plus the AT&T buildings to the north make for a terrible mini dead zone just where street-level retail could stich fabric together. If it were a more inviting context, perhaps Orange would have stayed...

Anonymous said...

It sucks that a once "promising" corridor such as Cermak Ave will be bound by Hilliard Homes on the west and a data center on the east. And in the middle is the vacant Lexington condo tower. What a stretch! Although I originally disagreed that Lexington would become public housing (or a section 8 "dumping ground"), I'm hard-pressed to argue against the fact that it makes sense for this increasingly undesireable location.

Anonymous said...

Agreed that the McHugh Data Center is not the best choice and they should have integrated some bottom level retail or even ART DISPLAY from local artist, but there is still ALOT of fantastic buildings, open land that will have retail/commercial coming. Cermak Corridor is bound by Chinatown and McCormick Place. You have the historic buildings on S. Michigan, Lexington Park Condos retail space, plots of land on Cermak/State, Ickes (now fully demolished!) land, corner spot of State/Cermak which will be changed (liquor store is closed and will be modernized to a restaurant/bar), the upgraded strip where CD Cleaners, Brandi's, Velvet Lounge + Chef Luciano are + Hilliard Homes that is now majority older/asian/AA demographic. This strip has the infracture there, just needs development. Also, not sure if a Green Line stop will be added at Cermak, but that would be a plus.

Anonymous said...

I'd rather these buildings be a datacenter than demolishing. They have neat architecture.

Over the weekend I took a walk over to Carbon and walked down Cermack from Michigan through Chinatown, then back on 26th to Michigan and through Motor Row. I haven't been through this area in quite awhile and have been hesitate to walk through it on my own as a young-ish female, but there was nothing at all to fear. This area reminds me of my own neighborhood at 18th and Michigan 5 years ago - no one around, but neat buildings that need some development. By the time I got back to my own block, I counted 10 people out walking around. Such a change, and that's even during a downed economy. I can't wait to see what the next 5 years brings. I think this corridor will be a great place to be.

Anonymous said...

For those of you still denying that this stretch of the sloop isn't problematic, please see today's articles in both the trib and sun-times re: Englewood resident Jackie Hancock. Our neighbor to the south held up the White Castle on 21st and Wabash at 8:30 pm last evening and fled straight north, with his loaded weapon, into the heart of the sloop before being apprehended on state street. And we wonder why business owners are a bit timid when it comes to opening retail in the sloop!

Anonymous said...

And how is this different than any other part of the city? Maybe you should read the article about how Old Navy in the Loop got held up along with all the articles about bank holdups in the city and suburbs. These things do not always happen in the "problematic" as you put it parts of the city.

Anonymous said...

"Chicago - Police apprehended a suspect who allegedly held up a White Castle armed with a BB gun on the Near South Side Tuesday night."

OOOO...BB gun. Scary.

Anonymous said...

Seriuosly? That's your response to an armed criminal holding up one of the few dining options in your neighborhood? Mocking the concern because it's "only" a BB gun?

I guess residents of the sloop have more in common with the degenerates living just south and west of the sloop than I thought.

I guess you don't have a wife or kids who would like to be able to take the L and get off at the Chinatown stop and walk home - but, because of people like Mr. Hancock, will likely never be able to do so.

Anonymous said...

Yes, that is my response. I'm a 35 year old female, I take the Chinatown stop, and I have no fears of living in the neighborhood I do which is near here just because someone idiot decided to hold up a fast food restaurant.

Josh said...

--21st and Wabash at 8:30 pm last evening and fled straight north, with his loaded weapon, into the heart of the sloop before being apprehended on state street--

Oh my God is this funny. Guy uses a bb gun to rob a store and then runs straight towards the city's largest police facility 3 blocks away. The 1st district facility at 18th and State includes not just all police officers assigned to the first district, but also the mass transit and traffic units and maybe one or two others.

There were dozens of shootings in the Hilliard homes at 20th and state/clark when I moved a few blocks north in the 90s. Now? Nothing.

The freaking security guard at Dearborn Village (18th-19th State to Clark) was beaten and robbed of his gun in 1998 when it was under construction. Today? Nothing even close.

But everybody should now abandon ship because a White Castle was robbed at 8:30 at night? Ha ha ha ha ha. Which suburb are you from?