Chicago officials propose pause on data center construction

Chicago Mayor Brandon Johnson and several alderpeople have introduced an ordinance to the City Council proposing a 12-month pause on the construction of new data centers and the material expansion of existing ones. The pause is intended to allow a newly created city task force to establish a regulatory framework for the industry. Mayor Johnson stated that while the city welcomes innovation and investment, growth must be managed responsibly to protect the health, safety, and quality of life of residents.

At the state level, Illinois Governor JB Pritzker indicated that the General Assembly is expected to consider the “Power Act” during a veto session scheduled for late 2026. The proposed legislation aims to regulate data centers by requiring them to invest in energy sources, ideally clean energy, and implement closed-loop water systems to prevent increasing water costs for local residents.