Chicago proposes 12-month moratorium on new data centers

Chicago officials are considering a one-year freeze on new data centers within the city limits. Mayor Brandon Johnson, alongside a group of council members, is advocating for this moratorium to allow the city to thoroughly examine the potential effects of data centers on the community's utilities and environment. Currently, there are 39 active data centers in Chicago.

The proposal gives Johnson's Data Centers Task Force time to investigate the industry's impact on clean air, clean water, and energy consumption. Johnson stated, "Chicago is open for business, but we are not for sale... growth must be done responsibly and in a way that protects the health, safety and quality of life of Chicago residents."

However, some other aldermen, like Ald. Bill Conway, are pushing their own ordinance that would impose additional zoning requirements and environmental reviews on data centers. Conway argues that the mayor's proposal risks months or even years of debate and potential legal battles while data centers continue to operate, pollute, and raise utility costs with little input from residents.

Chicago is not the only U.S. city to consider such a measure. Seattle, Charlotte, Baltimore, Cincinnati, Cleveland, and Oklahoma City have temporarily halted or restricted data center development while evaluating new regulations. At the state level, Illinois Governor JB Pritzker has temporarily halted tax incentives for data centers, though he claims he lacks the authority to impose a statewide moratorium.

Critics, such as the Data Center Coalition's Brad Tietz, argue that the moratorium could signal that Chicago is "closed for business" and that the proposal sends a negative message to potential investors. They claim that data centers are "net revenue generators" that contribute billions to the city's economy.

The issue has sparked controversy, with some communities opposing proposed data centers due to concerns about electricity demand, water usage, pollution, and other environmental impacts. President Trump has defended data centers, asserting that "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."

The proposals will now be discussed in the City Council, setting the stage for a debate on the best approach to regulate new data center development in Chicago.