Illinois Governor J.B. Pritzker has announced a pause on tax incentives for data centers in the state, effective immediately. This move comes as lawmakers and residents raise concerns about the environmental impact and economic benefits of these facilities. The decision affects the state’s data center tax incentive program, which was designed to attract large tech companies to Illinois.
The pause will allow state officials to review and reassess the program, which has been in place since 2019. During this time, the state will not accept new applications for tax incentives from data center developers. Existing projects that have already received incentives will not be affected by the pause.
Governor Pritzker’s decision follows growing criticism from environmental groups and local residents, who argue that data centers consume large amounts of energy and water, contributing to greenhouse gas emissions and straining local resources. Lawmakers are also scrutinizing the economic benefits of the tax incentives, which some argue have not delivered the promised jobs and revenue.
Original news story via The Hill.