Gov. JB Pritzker has issued a pause on new tax incentives for artificial intelligence (AI) data centers in Illinois, according to a statement released Friday.
The directive prevents the Department of Commerce and Economic Opportunity (DCEO) from processing agreements for its Data Center Investment Program beginning July 1.
The pause is reportedly designed to allow lawmakers time to develop a “comprehensive framework” for managing the environmental and infrastructural concerns brought by data center expansion.
“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,” said Governor JB Pritzker.
“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.
Gov. Pritzker’s office has released an outline of the framework, with the following key points:
- Establishing electricity rates for data centers
- Requiring permits and regulations for data center water usage
- Ensuring data centers support clean energy development
- Requiring public transparency by banning nondisclosure agreements between data centers and local governing bodies.
Click here to read the full framework and learn more information.
