Chicago City Council considers new data center regulations: 'We must have guardrails in place'
Chicago City Council is reviewing its 2024 data center regulations, which environmental groups deem outdated due to the growth of AI and increased energy demands. A working group recommends a new ordinance to implement environmental safeguards, updated zoning standards, and improved reporting requirements for water and energy consumption. The move aims to address resident concerns about noise, air quality, utility costs, and transparency.
Chicago City Council is currently considering significant changes to the city's 2024 data center regulations. Environmental groups argue that the existing ordinance is outdated, particularly with the rapid growth of artificial intelligence and the increasing energy consumption of data centers. A working group has recommended city-level changes to regulate data centers across Chicago, proposing a new ordinance.
The proposed ordinance includes several key areas. First, it mandates environmental safeguards, requiring the city to issue permits to data center businesses and monitor their operations. Companies would also be responsible for addressing resident concerns regarding noise from cooling systems and air quality impacts from diesel generators. Second, new zoning and land use standards would be introduced, potentially requiring companies to reduce their environmental footprint before expanding or building new facilities. Finally, the ordinance calls for increased reporting and accountability, obliging companies to disclose their water and energy usage.
While the data center industry is recognized for generating substantial property tax revenue, a city official, Alderman Gilbert Villegas, emphasized the need for "guard rails" to manage their impact. Community meetings across Chicago and its suburbs have highlighted major concerns among residents, including noise, high energy consumption (especially water), and the potential for increased electricity bills. A significant point of contention is the lack of transparency, as many companies are not currently required to report water usage, and some cities enter into non-disclosure agreements with data center operators.