Elk Grove Village property seeks $850M in junk bonds for CoreWeave data center
The high-yield debt offering reflects the insatiable appetite for AI infrastructure financing, as a Chicago suburb quietly becomes a data center hub.
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Add us on Google by Editorial Team Jun. 1, 2026A special-purpose entity called Elk Grove Village Property LLC is looking to raise $850 million through junk bonds to build a data center that will be leased to CoreWeave, the AI cloud infrastructure provider.
The planned facility would expand CoreWeave’s footprint in Elk Grove Village, Illinois, where the company already operates a facility known as US Central ORD1.
A quiet suburb with a loud data center appetite
Elk Grove Village currently hosts 20 operational data centers occupying roughly 4.5 million square feet. An additional 19 facilities are either planned or under construction.
AdvertisementLocal officials, including Mayor Craig Johnson, have championed the data center expansion as an economic development engine. The village has offered incentives to attract these projects, with one related Elk Grove Village Property LLC project previously receiving $51 million in sales tax exemptions tied to a commitment to create 20 jobs.
Concerns about water usage and utility costs have surfaced among residents.
CoreWeave’s debt-fueled expansion machine
CoreWeave started in 2017 as an Ethereum mining operation before pivoting to high-performance cloud computing for AI workloads.
In 2026, the company issued $1.75 billion in junk bonds, followed by an additional $1 billion offering. Those notes carried a 9.75% interest rate and mature in 2031.
The $850 million Elk Grove Village bond issuance is structured through a special-purpose property entity rather than CoreWeave’s corporate balance sheet directly, tying the debt to the physical real estate and lease and giving bondholders a claim on the property itself.
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