Mayor Brandon Johnson has proposed a 12-month moratorium on new data center development in Chicago, a move designed to pause construction while the city evaluates the sector's impact on local resources. The proposal, supported by a group of alders, aims to create a "comprehensive regulatory framework" before new facilities are approved. City officials cite the growing demand for electricity and water from the industry as the primary driver for the halt, noting that 39 active data centers currently operate within city limits.
The moratorium would allow Johnson's Data Centers Task Force additional time to study how the industry affects clean air, clean water, and energy use. In a statement, Johnson emphasized that while Chicago remains open for business and welcomes investment and jobs, growth must be managed responsibly to protect residents' health and safety. "Chicago is open for business, but we are not for sale," Johnson said, adding that the city must ensure development does not compromise the quality of life for its people.
The mayor's proposal faces immediate pushback from Ald. Bill Conway (34th), who is advancing a separate ordinance to regulate data centers. Conway argued that the moratorium risks months or even years of debate and litigation while data centers continue to build and increase utility bills without community input. His alternative ordinance would immediately subject data centers to additional zoning requirements and mandatory community and environmental reviews, seeking to bypass the waiting period associated with a full regulatory overhaul.
Chicago is not alone in its hesitation. Seattle, Charlotte, Baltimore, Cincinnati, Cleveland, and Oklahoma City have also imposed temporary halts or restrictions on new data center projects while reviewing their regulatory approaches. At the state level, Illinois Gov. JB Pritzker has paused new tax incentives for data centers but stated he lacks the authority to impose a statewide construction moratorium. Several Illinois cities, including Bloomington, Carbondale, Effingham, West Chicago, and Mattoon, have already paused new development or expansion.
Industry representatives argue that halting construction undermines Chicago's economic competitiveness. Brad Tietz of the Data Center Coalition stated that data centers are net revenue generators providing billions of dollars in economic investment. Tietz criticized the proposed moratorium as a signal that Chicago is closed for business, particularly as the city faces significant fiscal and budgetary challenges. President Trump also criticized efforts to restrict data centers on social media, suggesting that communities rejecting such facilities risk becoming "backwards and poor" rather than successful and wealthy.
Both the mayor's moratorium and Conway's ordinance will now proceed through the City Council. The upcoming legislative process will determine whether Chicago adopts a temporary pause or immediate regulatory requirements for its expanding data center sector.