Mayor Orders New Regulations, Reviews For Chicago Data Centers
Chicago Mayor Brandon Johnson issued an executive order imposing new rules and reviews for data center developments. He also established a task force to create a long-term regulatory strategy and called for the City Council to enact a moratorium on new data centers. These actions aim to prevent unchecked development from straining the city's water supply and energy grid.
Chicago Mayor Brandon Johnson has issued an executive order imposing new regulations and reviews on the city's data center industry, following recommendations from a city panel. The order mandates specific criteria for reviewing data center developments, including environmental impact, energy consumption, and infrastructure strain. It also establishes a task force, co-chaired by Chief Sustainability Officer Angela Tovar and policy chief Jung Yoon, to develop a long-term strategy for regulating these facilities.
In addition to the immediate executive order, Mayor Johnson is advocating for the City Council to pass an ordinance enacting a moratorium on new or expanded data centers. This proposed pause would remain in effect until the city's regulatory framework is updated. Johnson emphasized that Chicago will not permit development that compromises the city's water supply, increases energy costs, or impacts community health, citing that many existing data centers were built under outdated regulations.
Aldermen Maria Hadden and Lamont Robinson echoed the Mayor's sentiments, stressing the need for updated permitting and regulatory processes to safeguard residents' well-being. The mayor's actions come after a July report from a city working group, which highlighted that data centers are currently classified as offices under Chicago's zoning ordinance, allowing many to be permitted "by-right" without comprehensive zoning reviews. The task force is charged with implementing recommendations from this report, including potentially overturning a restriction on publicly releasing data center energy and water usage, and requiring specific permitting programs and City Council approval for most data center zoning reviews. Despite a previous report dismissing "hyperscale" data centers in the city, one such project has already been proposed for a South Side site.