Gov. JB Pritzker Halts Tax Incentives for Data Centers Amid Legislative Stalemate
Governor JB Pritzker of Illinois has issued an executive order to pause tax incentives for data centers starting July 1, following a legislative session where efforts to regulate these facilities stalled. The decision comes after several proposed measures, including the POWER Act, failed to pass in the Illinois General Assembly. The POWER Act aimed to impose strict water and energy standards on large data centers. Despite the legislative inaction, Pritzker emphasized the need to protect local communities and working families as the data center industry expands. The executive order allows previously approved tax incentives to continue while the state works on new legislation. Public frustration has been mounting over the environmental impact of data centers, which consume significant water and energy resources. In response, some local communities have taken legal action against data center projects, citing concerns over water usage and energy costs. 
