Illinois Gov. JB Pritzker is directing the Illinois Department of Commerce and Economic Opportunity to pause processing agreements for a Data Center Investment Program starting July 1.
“I am directing my administration to pause the processing of data center agreements while we continue working with the General Assembly and stakeholders on a comprehensive framework that protects affordability, safeguards our natural resources, and ensures responsible growth across Illinois. I look forward to continuing these conversations and getting this done the right way for Illinois working families and communities," Pritzker said in a statement.
As part of the Governor’s proposed budget, his administration pursued reforms through the legislative process because Illinois needs a comprehensive, long-term framework for data center policy, his office said.
As a result, the Governor is also calling on legislators, consumer advocates, labor organizations, environmental stakeholders, utilities, local governments, and industry leaders to work together during veto session to advance comprehensive reforms guided by a set of principles that include, among other things:
Data Centers Should Pay Their Fair Share
Pritzker believes that Illinois legislation should create a rate class for data centers and establish data center electricity rates:
• Assign costs that data centers impose on the electric grid to the new data center rate class, including distribution, generation, and transmission, where possible; assign to data centers the costs that they impose on water systems.
• Set energy and water efficiency requirements for data centers using established standards to help keep costs low and protect the environment.
• Ensure all utilities in the state are equipped to fairly manage and allocate the cost of data centers’ demand.
State Tax Incentives Should Be Paused
"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," Pritzker's office said.
Energy Reliability Must Prioritize Illinois Working Families and Businesses
Legislation should direct utilities to assign data centers interruptible electric service based on how much of their own clean energy they self-supply. Data centers that don't supply their own clean energy could have their electric service interrupted when the grid is strained so Illinoisans’ lights stay on.
Data Centers Should Support the Development of New Clean Energy
• Establish a framework for data centers to generate or pay for their own new clean energy resources that allows participants to receive timely service and financial consideration for their contributions to Illinois’ clean energy goals.
Existing incentive agreements under the Data Center Investment Program, including those entered into with the Illinois Department of Commerce & Economic Opportunity before July 1, 2026, will be honored.
