Pritzker pauses data center tax incentives in Illinois
Pritzker says the pause will give lawmakers and industry groups time to set guardrails on utility bills, water use and tax contributions.
- On Friday, Governor JB Pritzker directed the Illinois Department of Commerce and Economic Opportunity to pause processing new data center tax incentive agreements starting July 1, 2026, following legislative inaction.
- Legislators failed to pass House Bill 5513, known as the POWER Act, by the spring session deadline on May 31, which would have established environmental, water, and energy regulations for hyperscale data centers.
- Data centers' energy demand on the PJM grid has raised costs by $13 billion, while ComEd CEO Gil Quiniones noted grid requests have accelerated at an "exponential pace" since 2019.
- Climate Jobs Illinois and the Illinois AFL-CIO called the pause "shortsighted," warning it could shift investment and thousands of union jobs to Indiana, Kentucky, and Ohio.
- The Illinois Environmental Council and the Illinois Public Interest Research Group praised the framework's "direction," emphasizing data centers must be held accountable for their environmental and resource impact.
32 Articles
32 Articles
Illinois joins Ohio in ordering pause on data center tax credits
Governor JB Pritzker issued an order pausing state tax incentives for data centers in Illinois after the state legislature stalled his plan to keep data-center energy costs from affecting local residents’ bills. Pritzker, a Democrat seeking his third term, said his order was in response to the legislature’s failure to raise data centers’ electricity rates, given their high energy usage, which he asked them to do in February. He plans to push the…
Illinois Governor Orders Pause on Data Center Tax Credits
(Bloomberg) — Governor JB Pritzker issued an order pausing state tax incentives for data centers in Illinois after the state legislature stalled his plan to keep data-center energy costs from affecting local residents’ bills.
Gov. JB Pritzker pauses tax incentives for data centers after regulation efforts stall in Illinois legislature
Following stalled efforts in the Illinois legislature over regulating data centers, Gov. JB Pritzker paused tax incentives for the facilities beginning July 1.
Pritzker to suspend tax breaks for data centers, urging more discussion
Gov. JB Pritzker announced on Friday that he is directing the Illinois Department of Commerce and Economic Opportunity to halt tax incentives for data centers starting on July 1. The incentives have been in place as part of bipartisan legislation signed by Pritzker in 2019. Pritzker called on lawmakers to pass comprehensive reforms in the veto session after they failed to pass a massive reform on data centers before the end of the legislative se…
Gov. Pritzker pauses data center subsidies
The POWER Act, which would have regulated data centers in Illinois, failed to advance before the legislative deadline, leaving pending projects without new state guardrails. Meanwhile, Gov. J.B. Pritzker has paused data center tax incentives and is pushing for stricter standards on energy use, water consumption and community impact. Joining us to discuss the implications is Jen Walling, executive director of the Illinois Environmental Council.

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