Midwestern cities implement data center moratoriums

Local governments in the Midwest are implementing moratoriums on data center developments to address concerns regarding resource consumption and regulatory uncertainty.

In Chillicothe, the City Council has passed a 60-day moratorium on the industry within city limits. A public review meeting is scheduled for September 8, 2026, to discuss the proposed facility and circuit board manufacturing site at the former US Paper Mill. Alignment Engine, a developer based in Canton, Ohio, will present information regarding the proposed site improvements and facility.

In Ottawa, Illinois, city leaders have voted unanimously to extend a temporary moratorium on data centers through August 25, 2027. This extension allows the city to wait for the Illinois state government to establish statewide rules, such as those proposed in the stalled POWER Act. Local officials cited concerns over high electricity and water demands, as well as potential impacts on utility costs for existing customers, as primary reasons for the pause.