Hillwood Offers $1 Letter for Joliet Data Center
The developer's counter to ComEd's $587 million guarantee demand has sparked a lawsuit and a federal court dispute over power service.
Updated on Nov. 2, 2026 in Data Centers
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Hillwood is developing an 800-acre data center campus in Joliet valued at $20 billion, but it offered a $1 letter of credit instead of the $587 million financial guarantee ComEd required. ComEd scuttled the retail electricity agreement, and Hillwood sued, with the case sent to federal court in Chicago.
Why it matters
The dispute tests how utilities protect ratepayers from the power costs of large new data center projects. A federal judge has sent jurisdiction to the Illinois Commerce Commission, leaving the state regulator to weigh in on the outcome.
ComEd's guarantee demand equals $587 million, against a proposed campus valued at $20 billion on 800 acres. Hillwood says the full letter of credit is unnecessary until power transfers in 2029, and it is unclear whether the Illinois Commerce Commission will act on the dispute.
The players
Commonwealth Edison (ComEd)
ComEd is the largest electric utility in northern Illinois, serving the Chicago metropolitan area and responsible for delivering power to large customers.
Hillwood
Hillwood is a Dallas-based real estate developer founded by the Perot family that has built large logistics and industrial campuses across the United States.
Illinois Commerce Commission
The Illinois Commerce Commission is the state agency that regulates public utilities, including electricity rates and service agreements in Illinois.
The details
ComEd began requiring financial guarantees from new data center developments in 2025 to cover the power costs they would impose. Hillwood countered with a $1 letter of credit, arguing the full amount is not needed until power moves to the site in 2029, and it has asked federal regulators to step in.
Timeline
2025: ComEd begins requiring financial guarantees from new data centers.
2029: Power is set to begin moving to Hillwood's campus after completion.
Under the Hood
The Joliet dispute follows the wave of large-load electricity requests from AI and data center developers that has pushed utilities to require financial guarantees. Jurisdiction over the service agreement now rests with the Illinois Commerce Commission, which will decide whether the ComEd terms stand.
Utility guarantee rules for large data centers can shape whether electricity costs are passed to residential ratepayers in the Joliet area. Residents may see the outcome reflected in their bills if the power arrangements change.
The takeaway
Large data center projects can shift electricity cost risk onto utilities and their customers, so financial guarantees are becoming a key checkpoint. Readers following regional power costs should watch how the Illinois Commerce Commission rules on this agreement.
What happens next
Power is set to begin moving to Hillwood's campus in 2029, and the federal court case remains pending on jurisdiction.
Further reading
For broader context on the buildout, see Data Centers coverage across the region.
Source note: This article includes information reported by The Real Deal New York.
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