Compass Hoffman Estates: Compass Datacenters Acquires Former Sears HQ for $194M to Build Data Center Campus

Sep 18, 2023 | Posted by Eric Bell

Compass Datacenters has acquired the former Sears headquarters, spanning 197 acres in the Chicago area, for $194 million. As Sears continues to downsize its operations, Compass plans to replace the existing 2.4 million square-foot campus with data centers, reflecting the growing demand for cloud data storage in the region.

Located at 3333 Beverly Road in Hoffman Estates, the current interconnected buildings are set to be demolished to make way for the new data centers. The Chicago area has witnessed a surge in data center growth, with the primary challenge being the scarcity of available land for such projects.

Hoffman Estates Mayor Bill McLeod commented on the redevelopment, stating, “The transformation of the former Sears headquarters into a data center campus marks a new era for this prominent property and furthers the technological diversification of our tax base.” He added that Compass's investment, although still in its early stages, is anticipated to be in the billions and will benefit the community for many years.

The property had been on the market since late 2021 by Transformco, Sears' parent company, following a 2018 Chapter 11 bankruptcy filing. The sale was confirmed by village officials in July, but specifics were limited at that time.

Over recent years, Sears has closed nearly all its stores, including major outlets in Brooklyn and the Mall of America. By early August, the number of Sears department stores had dwindled to 12, a significant drop from its peak of over 4,000 stores, as reported by ScrapeHero.

A.J. Byers, Compass Chief Development Officer, highlighted the property's strategic location, noting its closeness to robust telecommunications fiber and ample power supply. Byers mentioned their collaboration with Hoffman Estates officials to ensure the data center campus promotes economic growth and job creation. He emphasized that the facility would incorporate Compass's top-tier sustainability practices throughout its design, construction, and operations.

Sears Campus view in 2023