County Board pauses carbon storage, data center projects for further review
The Henry County Board in Illinois has enacted a 12-month moratorium on data center development to study environmental impacts and draft an ordinance. This decision follows Governor JB Pritzker's order to pause the state's data center tax incentive program due to concerns about energy demand and affordability. No data center proposals had been submitted to the county prior to the moratorium.
The Henry County Board in Illinois recently voted to enact a 12-month moratorium on data center development, following similar action on carbon dioxide sequestration projects. Board member Jill Darin, who presented the action items, stated the data center pause is a proactive measure to allow officials time to study potential environmental impacts and draft a regulatory ordinance. This decision comes despite no specific data center proposals having been presented to the county.
The county's move aligns with a broader trend in Illinois, as Governor JB Pritzker earlier ordered the Department of Commerce and Economic Opportunity (DCEO) to cease processing new applications for the state’s data center tax incentive program. Governor Pritzker cited concerns regarding rising energy demand and affordability for residents as data center expansion continues statewide. The existing incentives approved before July 1 remain valid, but new construction employment tax credits for underserved areas are now on hold.
The board's action on data centers was passed by a 17-1 vote. The meeting also saw a public discussion on carbon sequestration, prompted by a proposal from Lapis Carbon Solutions and Big River Resources to inject CO2 beneath Galva, which has faced significant resident pushback due to safety, environmental, and economic concerns. Henry County Office of Emergency Management director Mat Schnepple recommended the carbon sequestration moratorium, which passed 17-0, and encouraged companies to continue data gathering while OEM develops safety protocols.