Pritzker open to ‘fair’ data center development, OKs local moratoriums
Illinois Governor J.B. Pritzker is open to data center development in the state, provided that companies bear the full cost of their impacts, including power. He also supports local governments imposing moratoriums on data centers. While state legislation (the POWER Act) aimed at restricting data centers failed, an executive action by Pritzker enacted a moratorium on tax credits for data center projects, drawing criticism from labor unions.
Illinois Governor J.B. Pritzker has signaled his openness to data center developments in the state, on the condition that corporations fully finance the impacts of their projects, particularly power consumption and taxes. The Governor emphasized that data center operators should either provide their own power or pay rates that prevent higher costs for other residents.
This stance aligns with the failed POWER Act, a piece of legislation Pritzker had championed, which sought to impose stricter regulations on data center development but was ultimately tabled in the General Assembly. The Data Center Coalition, an industry group, vocally opposed the POWER Act, arguing it would significantly impede economic growth in Illinois. Despite the bill's failure, its revival is anticipated in the upcoming fall veto session.
Furthermore, Governor Pritzker expressed support for local control over data center siting, stating he is not opposed to local communities deciding to enact moratoriums due to potential issues like noise. Separately, an executive action from the Governor recently imposed a moratorium on tax credits for data center projects. This decision has met with resistance from some trade unions, with the Illinois AFL-CIO announcing they will defer midterm election endorsements partly due to the projected impact of the tax credit pause on their workers.