Batavia Illinois – The 5th Ward

Below is a summary of the approved Batavia data center, updated with the latest information from the City of Batavia’s official FAQ and project webpage. By utilizing a vacant lot in our industrial area, the project maximizes tax revenue with minimal resource impact.

For the most up-to-date information directly from the city, visit the Batavia Data Center Project – Hut 8 webpage.

Location and Site Benefits

• Address: 1780 Hubbard Ave (Northeast Industrial Park).
• Infrastructure Synergy: The site is directly adjacent to the Northeast Substation (1900 Hubbard Ave). This proximity minimizes energy transmission loss and allows for direct fiber-optic “on-ramps.”
• Zoning & Infill: The property is zoned General Industrial. Using this vacant lot as an “infill” project allows the city to grow its tax base without rezoning residential land or encroaching on greenfield space.
• Isolation: The location is not near any existing or planned homes. It is located east of Kirk Road and south of the Aldi headquarters.

Ownership and Strategy

• Owner: Batavia DC Corp., a subsidiary of Hut 8 Corp. (Nasdaq: HUT).
• Key Restriction – Blockchain Ban: While Hut 8 has a history in Bitcoin mining, the Batavia facility is governed by a strict prohibition on blockchain computation. It is specifically designed for Enterprise Colocation and High-Performance Computing (HPC) workloads.
• Public Transparency (No NDAs): Unlike many data center developments in other regions, the financial projections, water caps, and power limits for this project are not hidden behind Non-Disclosure Agreements (NDAs). All terms are a matter of public record and are explicitly codified in the Master Services Agreement (MSA) approved by the City Council.

Power Sourcing and Capacity

• Market-Based Sourcing: The facility will purchase electricity on the open market and does not generate power onsite. It does not draw from the city’s standard Power Sales Agreement (PSA), ensuring residential rates are shielded from market fluctuations.
• Energy Glide Path:
  • Initial Usage: 20 MW (Operational goal: Late 2026 / Early 2027).
  • Final Capacity: Scalable to 50 MW by approximately 2031.
• Grid Protection: The city is requesting a 50 MW increase to its current ComEd capacity cap to maintain “headroom” for the rest of the community. Backup generators are onsite and will only be used in the event of a power outage.

Water Usage Approach

The project utilizes a Closed-Loop Cooling System, which is significantly more sustainable than traditional “evaporative” cooling towers.

• Daily Consumption: Municipal water use is strictly limited to 1,000 gallons per day (on average) for minor maintenance and staff needs (comparable to the usage of a four-person household).
• Initial Charge: The system requires a one-time initial load of ~425,000 to 450,000 gallons of ultra-pure, ionized water. The agreement specifies this water will be trucked in—not sourced from the city’s water system—to avoid any strain on the city’s aquifer.
• Recycling: The water is recirculated indefinitely and only needs to be discharged to the local sewer and replaced roughly every 2,000 days (about 5.5 years).

Employment & Economic Benefits to Batavia

The project is projected to create approximately 30 new jobs and generate between $23 million and $85 million in net revenue for the city over a 20-year period, depending on energy usage tiers.

Revenue Source	At 20 MW (Initial)	At 50 MW (Full Build-out)
Annual Utility Revenue	~$2.3 Million	~$5.7 Million
Franchise Fees (General Fund)	$375,000	$800,000
Property Tax Estimates	Significant (New revenue for schools/parks)	Significant (New revenue for schools/parks)
Infrastructure Investment	$18 Million (Upfront by developer)	N/A

Note: The $18 million in off-site electrical improvements (substation upgrades, new transformers) is paid for upfront by Hut 8. The city will reimburse this cost over 7 years using only the revenue generated by the project itself.

Expected Noise Levels

• Regulatory Compliance: The facility must adhere to the Batavia Noise Ordinance, which limits noise at the property line to approximately 55–60 dBA (comparable to a normal conversation).
• Mitigation Advantages: Because the site uses a closed-loop system (radiator-style cooling) rather than massive open-air evaporative fans, the constant “hum” associated with typical data centers is significantly reduced. Acoustic design elements, such as sound-dampening louvers and perimeter sound walls around backup generators, are planned to ensure no disruption to neighboring areas.

Project Timeline

Data Center Comparison: Land, Power, and Water Usage

Have Questions? Submit Them to the City

The City of Batavia is committed to keeping their FAQ page current as the project moves forward.

If your questions are not addressed in the current materials, you can submit them directly to city staff. Staff will review all submissions and provide responses, and questions of general public interest may be added to the official project FAQ.

Submit your questions directly to the city here: City of Batavia Data Center Questions Form

Author: Jim Fahrenbach

Data Center Development in Batavia Explained