Chicago mayor and Gov. Pritzker back 12-month moratorium on new data centers
Mayor Brandon Johnson, backed by Gov. JB Pritzker, proposed a 12-month moratorium on new data center development in Chicago on Sept. 23, 2026. City officials are considering how the facilities affect electric bills, water use and pollution.
The measure would pause new projects inside city limits for one year while Johnson's Data Centers Task Force studies the industry's effects and drafts what the mayor's office called a comprehensive regulatory framework. The city currently has 39 active data centers, according to city officials.
"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."
Gov. JB Pritzker has separately paused new state tax incentives for data centers. He has said he lacks the authority to impose a statewide moratorium on construction.
In the City Council, the proposal faces a competing approach from Ald. Bill Conway (34th), who is pushing an ordinance that would immediately place data centers under additional zoning rules and require community and environmental reviews.
Conway argued that a 12-month pause could drag out the process while construction continues elsewhere.
"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.
The Data Center Coalition, an industry group, warned that the moratorium could discourage investment during a difficult budget season for the city.
"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," Brad Tietz of the Data Center Coalition said in a statement. "Unfortunately, the Mayor's proposed moratorium sends another signal that Chicago is closed for business."
Chicago's debate comes as local governments across the country push back over data centers' rising demand for electricity and water. At least six major U.S. cities, including Seattle, Charlotte, Baltimore, Cincinnati, Cleveland and Oklahoma City, have temporarily halted or restricted new data center development while they consider new rules.
Within Illinois, Bloomington, Carbondale, Effingham, West Chicago and Mattoon have already paused new data center projects or expansions.
The issue has also drawn national attention. President Donald Trump criticized efforts to restrict data centers on social media, writing that communities that reject them risk being "backwards and poor" while those that accept them can become "successful and rich, with far lower taxes and jobs all over the place."
Johnson's office said the pause would give the task force time to examine clean air, clean water and energy use before the city approves additional facilities.
Both Johnson's moratorium and Conway's ordinance now move through the City Council. The next step is a council decision on whether Chicago should pause development first or regulate the industry immediately.
