Year-Long Ban On New Data Centers Pitched By Chicago Mayor Brandon Johnson
Chicago Mayor Brandon Johnson is proposing a year-long ban on new data center construction and material expansion of existing ones to allow a city task force to develop regulatory frameworks. This proposal, along with a separate ordinance from Ald. Bill Conway for new regulations, has been introduced to the City Council. The data center industry has strongly opposed the moratorium, warning of economic losses, while residents continue to voice concerns over noise, water usage, and electricity costs.
Chicago Mayor Brandon Johnson and several alderpeople have introduced an ordinance to the City Council proposing a year-long moratorium on new data center construction and the "material expansion" of existing facilities. The proposed ban aims to provide a newly established city task force, formed by an August executive order, with sufficient time to develop a comprehensive regulatory framework for data centers within Chicago. Mayor Johnson emphasized that while Chicago welcomes innovation and investment, growth must be responsible and safeguard residents' health, safety, and quality of life.
Separately, Alderman Bill Conway (34th) has introduced his own ordinance, which seeks to add regulations for data centers and ban them in specific districts, though it stops short of a citywide moratorium. Both ordinances were sent to the council’s rules committee, indicating potential delays. The data center industry, represented by Brad Tietz, director of state government affairs in the Midwest for the Data Center Coalition, immediately criticized Johnson's proposal, arguing it signals Chicago is "closed for business" and would lead to a loss of economic investment, jobs, and tax revenue to neighboring areas.
The debate arises amidst growing national controversy over data centers, with residents raising concerns about noise, water consumption, and electricity costs. Conversely, the industry highlights economic benefits like property taxes and job creation. Cook County, which includes Chicago, currently hosts 109 data centers with 12 more planned, according to the Illinois Data Center Map. Conway's ordinance specifically aims to address facilities like one at 400 S. LaSalle St., requiring a Planned Development zoning process for new facilities in certain areas to ensure community input and city oversight.