Illinois Governor JB Pritzker moves to pause new agreements for data center tax incentives
Illinois Governor JB Pritzker has directed a pause on new agreements for data center tax incentives, effective July 1. This action is part of a comprehensive framework aimed at responsible data center growth, which includes requiring energy and water use reporting, public permit notices, and community benefits agreements. The framework also proposes mandates for clean energy contributions and efficiency standards to protect resources and affordability.
Illinois Governor JB Pritzker has ordered the Illinois Department of Commerce and Economic Opportunity to temporarily halt the processing of new agreements for data center tax incentives, starting July 1. Governor Pritzker emphasized the need to balance technological innovation and economic growth with the protection of working families and local communities amidst the rapid expansion of the data center industry.
In conjunction with this pause, Governor Pritzker outlined a comprehensive framework designed to address the environmental and community impacts of data centers. Key proposals within this framework include banning nondisclosure agreements between data centers and local governments, requiring regular reporting of energy and water usage, and mandating public notice for permit applications.
Furthermore, the governor's plan calls for data centers to enter into community benefits agreements, contribute to clean energy resources, implement energy and water efficiency requirements, and potentially reduce power consumption during periods of grid strain. These measures aim to ensure responsible development, safeguard natural resources, and maintain affordability across Illinois.