Illinois

Data center activity in Illinois

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Regulatory Environment Score
C
-10 pts

Illinois is one of the most moratorium-heavy states in the country, with at least 54 moratoriums enacted and only 5 rejected, reflecting deep and widespread local skepticism about data center development. Zoning outcomes offer some counterbalance with at least 37 approvals against 11 denials, suggesting that projects which advance past moratoriums have a reasonable chance of permitting success. However, at least 8 projects have been blocked compared to 4 approved despite opposition. At least 59 companies remain active, signaling strong market confidence in the Chicago metro and broader Illinois market despite the challenging regulatory landscape. Compared to neighboring Indiana, where moratorium counts are significantly lower and opposition outcomes are more favorable, Illinois presents a notably harder path for developers.

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Governor announces halt to new data center incentives
News ClipWSPYnews.com·Yorkville, Kendall County, IL

Governor announces halt to new data center incentives

Governor J.B. Pritzker announced a halt to new data center tax incentives in Illinois due to concerns over electricity and water usage. He called on the General Assembly to ensure data centers pay their fair share and that residents have an opportunity to comment on proposed projects. Yorkville City Hall noted that the announcement does not impact its previously approved data center projects.

6/9/2026
News ClipWEEK | 25 News Now·North Pekin, Tazewell County, IL

North Pekin residents told old AMC theaters will not be data center

North Pekin residents opposed a rumored data center project at a former AMC theater site during a public meeting. The property owner and village president assured residents that the rezoning from retail to light industrial is not for a data center, but to make the property marketable for other uses. The rezoning vote is pending.

6/9/2026
My Turn | The real cost of Champaign County’s data-center moratorium
News ClipThe News-Gazette·Champaign County, IL

My Turn | The real cost of Champaign County’s data-center moratorium

An opinion piece argues that Champaign County's 12-month data center moratorium should lead to smart regulations rather than a permanent barrier to development. It highlights the economic benefits of data center construction jobs for East Central Illinois and acknowledges concerns about energy and water use. The author advocates for responsible design and investment to shape the industry locally.

6/9/2026
Morgan administrator talks data center speculation, moratorium during board meeting
News ClipJacksonville Journal-Courier·Jacksonville, Morgan County, IL

Morgan administrator talks data center speculation, moratorium during board meeting$

A Morgan County administrator addressed speculation about data centers and clarified the county's six-month moratorium on such developments. She debunked rumors of existing data centers and discussed a petition advocating for a longer moratorium, which had issues with clarity and signature validity. The county is using the moratorium period to prepare necessary ordinances and regulations for future data center applications.

6/9/2026
Lee County officials: No data center coming to 387-acre property near Nelson
News ClipShaw Local·Nelson, Lee County, IL

Lee County officials: No data center coming to 387-acre property near Nelson

Lee County officials deny that a data center is planned for a 387-acre property near Nelson, despite public protests and a removed real estate listing. Local residents had initiated a petition citing concerns about farmland, rural character, and environmental health, leading to the county implementing a technology overlay zoning district to regulate potential future developments. Governor JB Pritzker has also halted state tax incentives for data centers.

6/8/2026
News Clipthexradio.com·Effingham County, IL

County Board Committee Approached About Moratorium on Data Centers

The Effingham County Board's Administrative Committee discussed a proposed moratorium on data centers, following a similar action by the Effingham City Council. Advocates urged the county to implement a moratorium for further research on data center impacts. County officials noted that the county's lack of zoning might hinder direct enactment of a county-wide moratorium, with a formal board vote pending.

6/8/2026
No data center for North Pekin said village board
News ClipCIProud.com·North Pekin, Tazewell County, IL

No data center for North Pekin said village board

North Pekin Village President Steve Flowers announced that the former AMC Pekin-14 theater will not be converted into a data center, citing a lack of suitable infrastructure. This decision was met with applause from residents who had actively opposed the proposal due to concerns over utility bills, water usage, and noise pollution.

6/8/2026
Robbins Mayor Darren Bryant seeks to attract data center at dormant trash incinerator site
News ClipChicago Tribune·Robbins, Cook County, IL

Robbins Mayor Darren Bryant seeks to attract data center at dormant trash incinerator site

Robbins Mayor Darren Bryant is actively seeking to attract a data center to a 16.5-acre dormant incinerator site to boost local tax revenue. The project, which is in early discussions, faces significant challenges related to power supply and requires a zoning change from the village. Utility companies have cited long wait times and substantial upfront costs for power infrastructure.

6/8/2026
As people protest data centers across the Heartland, lawmakers rush to regulate development
News ClipIPM Newsroom·Champaign County, IL

As people protest data centers across the Heartland, lawmakers rush to regulate development

Communities across the Midwest and South are increasingly opposing large-scale data center developments, citing concerns over water and energy usage. In response, several counties have enacted moratoriums on development, while state lawmakers are rushing to introduce and implement new regulations and pause tax incentives for data centers.

6/8/2026
Glock ban, POWER Act among 12 major bills that stalled in Illinois
News ClipThe State Journal-Register·IL

Glock ban, POWER Act among 12 major bills that stalled in Illinois

The Illinois legislature failed to advance several key bills, including the proposed POWER Act aimed at regulating data centers. This bill would have mandated renewable energy use, water usage tracking, and community benefits agreements for data center projects. Despite discussions about data centers' impact on electricity and water, the legislation stalled, though negotiations are set to continue.

6/8/2026
Illinois Data Center Regulation Bill Stalls in Legislature
News ClipCapitol City Now·IL

Illinois Data Center Regulation Bill Stalls in Legislature

A significant bill (House Bill 5513, the POWER Act) aimed at regulating data centers in Illinois failed to advance during the recent legislative session. The proposed legislation would have mandated renewable energy use, water usage tracking, and community benefits agreements for data centers. Despite its current stall, negotiations are expected to continue with potential for revival in future sessions.

6/7/2026
Illinois data center fight escalates as state regulation fails and communities push back
News ClipShaw Local·IL

Illinois data center fight escalates as state regulation fails and communities push back

Data center opposition is intensifying across Illinois as state lawmakers failed to pass comprehensive regulation, prompting Governor JB Pritzker to call for a pause on state incentive processing. Local communities are engaging in lawsuits and zoning battles, while new state legislation is being proposed to grant municipalities more control and potentially enact a development moratorium.

6/7/2026
News ClipMint·IL

Illinois Governor Orders Pause on Data Center Tax Credits

Illinois Governor JB Pritzker has ordered a pause on state tax incentives for data centers. This decision follows the legislature's failure to increase electricity rates for data centers and comes amid growing community opposition to data center projects. The pause aims to address concerns about high energy usage and its impact on local utility bills.

6/6/2026
Gov. JB Pritzker pauses tax incentives for data centers after regulation efforts stall in Illinois legislature
News ClipChicago Tribune·IL

Gov. JB Pritzker pauses tax incentives for data centers after regulation efforts stall in Illinois legislature

Illinois Governor JB Pritzker has paused tax incentives for data centers via executive order, effective July 1, after legislative efforts to regulate the industry stalled. This move is a response to growing public frustration over data centers' impact on energy and water resources, and follows the failure of bills aimed at extending a tax incentive moratorium and strengthening local control. The governor's administration plans to work with the General Assembly on new legislation to address these concerns.

6/6/2026