“Illinois Gov. JB Pritzker (D) said Friday he is pausing the state’s data center tax incentives starting in July amid a push to address concerns about electricity costs and water resources that have plagued the AI infrastructure build-out nationwide.
He directed state officials to pause agreements under the Data Center Investment Program, which exempted data center developers and operators from certain state and local taxes and provided additional tax credits for some projects.
‘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,’ Pritzker said in a statement.
‘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,’ he continued.”
