Mayor Brandon Johnson proposes Chicago data center moratorium
Chicago Mayor Brandon Johnson has proposed a one-year data center moratorium ordinance to address concerns about pollution, water use, and electricity costs. The ordinance, which is now in the City Council's hands, aims to provide time for the city to develop long-term regulatory policies. The proposal faces criticism from industry groups and some aldermen who believe it could deter economic growth or is not the most effective approach.
Chicago Mayor Brandon Johnson has officially proposed a one-year moratorium ordinance on data center development within the city. The proposal, introduced to the City Council, aims to create a temporary pause to allow Johnson's administration to develop comprehensive policies addressing community concerns related to data centers, including pollution, water usage, and increased electricity costs.
Alderman Maria Hadden, chair of the City Council Environmental Committee and a co-sponsor, emphasized that the moratorium is a safeguard to allow the city to 'catch up' on regulation. She clarified that the intent is not to ban data centers entirely but to ensure sustainable development by collaborating with industry stakeholders to establish a robust regulatory framework. Hadden is also sponsoring separate legislation to mandate annual water and energy usage reporting from Chicago's existing 39 data centers.
The Data Center Coalition, an industry advocacy group, has criticized the proposed moratorium, with Midwest director Brad Tietz arguing it would hinder economic growth, jeopardize union jobs, and deter clean energy investments. Alderman Bill Conway, a critic of Johnson's previous executive order on data centers, has introduced his own legislation to immediately impose stricter regulations, requiring data centers to be treated as planned developments, subjecting them to community review and environmental enforcement. Conway's ordinance seeks to prevent the perceived 'Johnson gap' in regulation, citing a data center project in his ward that proceeded without community input.
The mayor's moratorium faces potential hurdles within the City Council, as Alderman Marty Quinn used a parliamentary maneuver to delay its committee consideration. State officials, including Illinois Comptroller Susana Mendoza and Secretary of State Alexi Giannoulias, have also expressed nuanced views, with Mendoza opposing a moratorium and Giannoulias emphasizing responsible, environmentally friendly development.