Chicago proposes 12-month moratorium on new data centers

Chicago could halt new data center development within city limits for a year.

Why it matters: Data centers' growing demand for electricity and water could affect residents' utility bills and the environment, and city leaders want more time to study those impacts.

The latest: Mayor Brandon Johnson, along with a group of alders, is pushing for a 12-month moratorium while the city develops a "comprehensive regulatory framework" for data centers.

There are 39 active data centers in Chicago, according to the city.

Details: The proposal would give Johnson's Data Centers Task Force time to study the industry's impacts on clean air, clean water and energy use.

What they're saying: "Chicago is open for business, but we are not for sale," Johnson said in a statement.

"We welcome innovation, investment, and the jobs and opportunities that come with it, but growth must be done responsibly and in a way that protects the health, safety and quality of life of Chicago residents." Context: The announcement comes as other alders, including Ald.

Bill Conway (34th), push their own ordinance to regulate data centers.

"The Mayor's proposal risks months if not years of debate and litigation, all while data centers keep building, polluting, and spiking utility bills with zero community input," Conway said in a statement.

Conway's ordinance would immediately subject data centers to additional zoning requirements and community and environmental reviews.

Zoom out: Chicago wouldn't be alone.

At least a half-dozen major U.S. cities, including Seattle, Charlotte, Baltimore, Cincinnati, Cleveland and Oklahoma City, have temporarily halted or restricted new data center development while considering new regulations.

At the state level, Illinois Gov.

JB Pritzker has paused new tax incentives for data centers, but has said he doesn't have the authority to impose a statewide moratorium on construction.