Proposed Chicago data center pause has taxpayer implications

Chicago Mayor Brandon Johnson is pushing for a one-year moratorium on new data center development or expansion within the city, despite the ordinance being sent to the rules committee instead of a joint committee on zoning and environment. Mayor Johnson stated his commitment to the moratorium to establish strong standards for community and environmental protection.

Brad Tietz, director of state government affairs – Midwest for the Data Center Coalition, expressed perplexity over the proposed pause, arguing that Chicago is unlikely to become a major data center hub and that a moratorium would send a negative signal to an industry that generates substantial property tax revenue, citing suburban Elk Grove Village as an example where data centers generate four to six times more property tax than traditional properties. Tietz also highlighted that a moratorium would negatively impact union construction jobs and clean energy investments, noting that data centers were responsible for 84% of renewable energy purchases nationally in the first half of 2025.

Illinois Governor J.B. Pritzker indicated he does not wish to stop data centers statewide but supports local governments like Chicago making their own decisions. Mayor Johnson's administration is reportedly assessing the risk of potential litigation against the proposed moratorium.