Governor JB Pritzker has instructed the Illinois Department of Commerce and Economic Opportunity to temporarily halt the processing of new data center tax incentive agreements.
According to the governor’s office, this suspension of the Data Center Investment Program is set to begin on July 1.
Governor Pritzker emphasized, “Illinois stands at the forefront of technological innovation and economic progress, but it is essential to ensure the well-being of working families and local communities as the data center sector grows rapidly. I am therefore directing a pause on processing data center agreements as we collaborate with the General Assembly and other stakeholders to develop a comprehensive framework. This framework will focus on maintaining affordability, protecting natural resources, and promoting responsible expansion throughout Illinois. I am eager to continue these discussions and to achieve the best outcome for Illinois families and communities.”
Additionally, Governor Pritzker introduced a framework to tackle the effects of data centers.
Within this framework, the governor proposed several measures, including:
-Banning nondisclosure agreements between data centers and local governments,
-Require data centers to regularly report their energy and water use,
-Require data centers to post public notice when applying for permits,
-Require data centers to enter community benefits agreements,
The governor’s plan also calls for requiring data centers to pay for clean energy resources, have data centers go dark when the grid is strained, set energy and water efficiency requirements and more.
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