Chicago mayor proposes 12-month moratorium on new data centers
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Chicago could halt new data center development within city limits for a year.
Why it matters: Data centers' growing demand for electricity and water could affect residents' utility bills and the environment, and city leaders want more time to study those impacts.
The latest: Mayor Brandon Johnson, along with a group of alders, is pushing for a 12-month moratorium while the city develops a "comprehensive regulatory framework" for data centers.
- There are 39 active data centers in Chicago, according to the city.
Details: The proposal would give Johnson's Data Centers Task Force time to study the industry's impacts on clean air, clean water and energy use.
What they're saying: "Chicago is open for business, but we are not for sale," Johnson said in a statement. "We welcome innovation, investment, and the jobs and opportunities that come with it, but growth must be done responsibly and in a way that protects the health, safety and quality of life of Chicago residents."
Context: The announcement comes as other alders, including Ald. Bill Conway (34th), push their own ordinance to regulate data centers.
- "The Mayor's proposal risks months if not years of debate and litigation, all while data centers keep building, polluting, and spiking utility bills with zero community input," Conway said in a statement.
- Conway's ordinance would immediately subject data centers to additional zoning requirements and community and environmental reviews.
Zoom out: Chicago wouldn't be alone. At least a half-dozen major U.S. cities, including Seattle, Charlotte, Baltimore, Cincinnati, Cleveland and Oklahoma City, have temporarily halted or restricted new data center development while considering new regulations.
- At the state level, Illinois Gov. JB Pritzker has paused new tax incentives for data centers, but has said he doesn't have the authority to impose a statewide moratorium on construction.
- Illinois cities like Bloomington, Carbondale, Effingham, West Chicago and Mattoon have already paused new data center development or expansion.
The other side: "As the City of Chicago faces significant and continuing fiscal and budgetary challenges, it's important to recognize that data centers are net revenue generators that provide billions of dollars in economic investment," Data Center Coalition's Brad Tietz said in a statement.
- "Unfortunately, the Mayor's proposed moratorium sends another signal that Chicago is closed for business."
Friction point: Communities across the country are pushing back against proposed data centers over concerns about electricity demand, water use, pollution and other impacts.
- President Trump has criticized efforts to restrict them, writing on social media: "The only reason that communities throughout the U.S.A. should not want Data Centers is if they want to end up being backwards and poor. If they want to be successful and rich, with far lower taxes and jobs all over the place, let Data Reign."
What's next: Both proposals will now make their way through the City Council, setting up a debate over how the city should regulate new data center development.