Data centers hot issue in governor’s race
Illinois Governor JB Pritzker has paused data center tax incentives, citing concerns over energy and water resources, a shift from his earlier support. This move, driven by the demands of AI-driven hyperscale data centers, has become a central issue in the governor's race, with both Pritzker and his Republican opponent Darren Bailey advocating for increased regulations on the industry.
Illinois Governor JB Pritzker has reversed his stance on data center incentives, pausing tax credits he signed into law in 2019, citing increasing strain on energy and water resources, especially from new hyperscale AI data centers. Pritzker stated that the state will no longer incentivize data centers and will require them to supply their own energy and implement closed-loop water systems to protect Illinois residents and businesses from higher utility rates and environmental impacts.
This shift has made data center policy a key issue in the current governor's race. Pritzker's Republican opponent, Darren Bailey, while also advocating for stricter regulations and a halt to tax incentives, frames his position around affordability and protecting citizens, though his campaign uses AI-generated images.
The Illinois Clean Jobs Coalition has pushed for data center regulations, and a recent poll indicates strong public support across the political spectrum for legislation that would require hyperscale data centers to bring their own energy and report on water use and environmental impacts. The governor's pause on incentives, implemented after lawmakers failed to act on his request for new regulations, has drawn criticism from labor leaders who fear job losses to neighboring states. Lawmakers are expected to revisit data center regulations during the fall veto session.