Chicago Mayor Brandon Johnson, together with several aldermen, is pushing for a 12-month moratorium on new data center construction within the city while officials develop a "comprehensive regulatory framework" for the industry. The pause is intended to give the city's Data Centers Task Force time to study the sector's impacts.
Why it matters
City leaders say growing electricity and water demands from data centers could affect residents' utility bills and the environment. According to the city, there are currently 39 active data centers in Chicago.
Proposal details
The proposed moratorium would halt approvals for new data center projects for one year so the task force can assess effects on clean air, clean water and energy use and recommend regulatory changes.
Responses
Mayor Brandon Johnson said in a statement: "Chicago is open for business, but we are not for sale. 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."
Ald. Bill Conway (34th) has introduced his own ordinance to impose immediate zoning, community and environmental review requirements on data centers. He warned 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."
Brad Tietz of the Data Center Coalition argued in a statement that data centers are "net revenue generators that provide billions of dollars in economic investment," and said the proposed moratorium "sends another signal that Chicago is closed for business."
Broader context
Chicago would join at least half a dozen other major U.S. cities — including Seattle, Charlotte, Baltimore, Cincinnati, Cleveland and Oklahoma City — that have temporarily halted or limited new data center development while considering new rules. At the state level, Illinois Gov. JB Pritzker has paused new tax incentives for data centers but said he lacks authority to impose a statewide construction moratorium.
Several Illinois cities, such as Bloomington, Carbondale, Effingham, West Chicago and Mattoon, have already paused new data center development or expansion.
Nationwide, communities are raising concerns about electricity demand, water use, pollution and other local impacts related to data centers.
Next steps
Both the mayor's moratorium proposal and Ald. Conway's ordinance will go through the Chicago City Council, setting up a debate over how the city should regulate future data center development.
