Pritzker pauses new incentives for data centers in Illinois – The State Journal-Register

• Gov. JB Pritzker announced June 5 that he is directing a state agency to put a hold on new agreements relating to an incentive program for data centers.
• A news release said that pausing state incentive is necessary to understand how the incentives are driving development that is insensitive to consumer costs, environmental impact.

Following “inaction” from the Illinois General Assembly, Gov. JB Pritzker is directing a state agency to put a hold on new agreements relating to an incentive program for data centers.

Pritzker is directing the Illinois Department of Commerce and Economic Opportunity to pause processing agreements for the Data Center Investment Program, starting July 1.

“Illinois has an opportunity to continue leading in technological innovation and economic growth, but we also have a responsibility to protect working families and local communities as the data center industry rapidly expands,” Pritzker stated in a news release that was shared June 5.

Specifically, Pritzker’s release said that as the demand to develop data centers is increasing at a rapid pace, “pausing state incentives for data centers is necessary to understand whether these incentives are driving development that is insensitive to consumer costs and environmental impact.”

The announcement follows the state legislature’s inaction on legislation that would have established environmental, water, and energy regulations for hyperscale data centers.

Rep. Carol Ammons, D-Urbana, the chair of the House Energy and Environment Committee and a sponsor of the bill, said at a May 26 hearing that at least one more subject matter hearing is needed so lawmakers can hear from additional stakeholders, Capitol News Illinois reported.

The spring legislative session concluded on May 31.

Pritzker’s aim

The news release from Pritzker’s office said Pritzker’s administration pursued reforms on artificial intelligence and data center development as part of Pritzker’s proposed budget, and adding that “Illinois must ensure that working families are not left paying the price through higher utility bills, strained reliability, and increased pressure on local water resources.”

Pritzker wants to see the state committed to economic growth and technological innovation, but says the state must establish clear guardrails “to ensure data center growth benefits communities and consumers alike,” the release read.

Pritzker calls on stakeholders

Pritzker is calling on legislators, consumer advocates, labor organizations, environmental stakeholders, utilities, local governments, and industry leaders “to work together” during veto session and to advance reforms, guided by principles that he laid out.

Here are the reforms listed in the news release:

• Data centers should pay their fair share
• State tax incentives should be paused
• Energy reliability must prioritize Illinois working families and businesses
• Data centers should support the development of new clean energy
• Illinois must protect its water resources
• Illinois must maintain strong clean air protections
• Communities deserve transparency and a meaningful voice

(This story was updated to add a new video.)

Tom Ackerman covers breaking news and trending news along with general news for the Springfield State Journal-Register. He can be reached at tackerman@usatodayco.com.