Pritzker open to ‘fair’ data center development, local moratoriums
Illinois Governor J.B. Pritzker is open to data center development but insists companies cover their own power costs and local impacts. He also supports local communities implementing moratoriums. A state bill (the POWER Act) that would have restricted data center development failed, while an executive action imposing a moratorium on data center tax credits has drawn opposition from trade unions.
Illinois Governor J.B. Pritzker has indicated his openness to data center development across the state, provided that corporations bear the full cost of their operational impacts, particularly concerning power consumption. This stance follows the legislative failure of the proposed POWER Act, a bill aimed at heavily restricting new data center developments in Illinois, which ultimately lacked the necessary support to pass.
Pritzker emphasized that data center operators should either procure their own power sources or pay rates ensuring that local residents do not face increased electricity costs. He also expressed support for local control, stating that communities and local governments should have the authority to decide on data center siting and implement moratoriums if they deem it necessary, citing concerns such as noise.
The Data Center Coalition, an industry group, actively opposed the POWER Act, arguing it would hinder economic development. Despite efforts to revive it, the bill was tabled. Separately, an executive action by Governor Pritzker has imposed a moratorium on tax credits for data center projects. This move has been met with disapproval from some trade unions, with the Illinois AFL-CIO stating it will defer endorsements for upcoming midterm elections partly due to the projected impact of the tax credit pause on its members.