Gov. Pritzker orders pause on new data center deals
Illinois Gov. JB Pritzker has ordered a pause on new agreements under the state's Data Center Investment Program starting July 1. This executive action comes as lawmakers debate new regulations for the rapidly growing data center industry, addressing concerns over energy costs, water use, and community impact. The governor is seeking a comprehensive policy that balances economic growth with resource protection and consumer safeguards.
Illinois Governor JB Pritzker has directed the Illinois Department of Commerce and Economic Opportunity to halt the processing of new agreements under the state's Data Center Investment Program, effective July 1. This move follows the Illinois General Assembly's failure to pass legislation regulating data centers during its spring session, amidst ongoing debates over the industry's impact on energy costs, water resources, and local communities.
Governor Pritzker emphasized the need to balance economic growth and technological innovation with protections for consumers and natural resources. While existing incentive agreements will remain valid, no new agreements will be approved as state officials and lawmakers work towards developing a comprehensive regulatory framework.
The governor has proposed several principles for lawmakers to consider during the fall veto session. These include requiring data centers to bear a greater share of infrastructure costs for electric and water systems, pausing state tax incentives for new projects, and mandating facilities to support new clean energy development. Additionally, the proposed framework calls for measures to protect water supplies, maintain air quality standards, increase transparency through public reporting of energy and water use, and foster greater community involvement in the permitting process.
Pritzker's administration highlighted that data centers consume substantial amounts of electricity and water, with some facilities rivaling the water usage of a medium-sized town. Stronger regulations are deemed necessary to prevent rising utility costs and resource strain from disproportionately affecting Illinois residents. The governor has pledged to continue collaborating with legislators, utilities, environmental groups, labor organizations, local governments, and industry representatives to finalize a comprehensive data center policy.