Illinois to halt tax breaks for data centers
Illinois Governor JB Pritzker is pausing the state's data center investment program on July 1st, halting tax incentives for data centers. This move aims to ensure affordability and safeguard natural resources. The administration plans to work with lawmakers to develop a new framework including requirements for clean energy, grid strain management, and water efficiency.
Illinois Governor JB Pritzker has announced a pause on the state's data center investment program, effective July 1st, which will halt tax incentives for new data center developments. According to a statement from Pritzker's office, the administration seeks to ensure affordability and protect natural resources amidst the rapid growth of AI data centers.
Governor Pritzker's plan includes a new framework to be developed with lawmakers and stakeholders. This proposed framework would require data centers to pay for clean energy resources, power down during periods of energy grid strain, and adhere to new water efficiency requirements.
The video also briefly touches on similar concerns in Texas, noting that data center development is a significant issue for many Texans due to tax breaks and potential water usage impacts. A recent study by UTI suggests data centers could account for up to 9% of Texas's water use by 2040. Tech giant Google was mentioned for investing $10 million in water projects across Texas as data centers continue to expand in the state.