Energy Benchmarks, Possible Moratorium Among the Topics Driving Chicago’s Data Center Discussion
Chicago is actively discussing and implementing new regulations for data centers, including a recently approved energy benchmarking ordinance aimed at increasing transparency on energy and water usage. A proposed temporary moratorium on new data center development was introduced but its fate remains uncertain after being routed to a committee, amidst opposition from industry groups like the Data Center Coalition. Policymakers are working to establish appropriate guardrails for data centers in the dense urban environment.
Chicago policymakers are grappling with how to regulate data centers, which have drawn increased public attention due to their resource intensity and potential impact in a dense urban environment. The city is considering various guardrails for data centers, addressing concerns such as noise from cooling systems and air pollution from backup generators, as well as energy and water consumption.
At a recent City Council meeting, alderpeople voted to remove exemptions for data centers from the city’s Energy Benchmarking Ordinance. This action, a key recommendation from the city’s working group on sustainable data centers, aims to provide transparency on data centers' energy efficiency and water usage. However, other proposed regulations, including a temporary moratorium on new data center development, faced resistance.
Mayor Brandon Johnson previously signed an executive order in August, addressing noise controls and air pollution permitting for data centers and calling for a temporary moratorium on new developments. A moratorium ordinance, introduced by alderpeople, would have applied to data centers larger than 1,000 square feet with over 20% server floor space. Its future is uncertain, however, as it was promptly routed to the Rules committee.
Angela Tovar, commissioner of Chicago’s Department of Environment and chief sustainability officer, supports a moratorium to allow policymakers time to develop adequate regulations. Conversely, Brad Tietz, Midwest director of state government affairs at the Data Center Coalition, argues that a moratorium is unnecessary and sends a negative signal to potential investors. While the Coalition opposes the moratorium, it did not oppose the mayor's executive order or the benchmarking requirements. Separately, Ald. Bill Conway introduced an ordinance to zone data centers as planned developments, which would require public review, but this was also sent to the Rules committee.