Illinois pauses data center tax incentives avoiding utility bill increases
Illinois is hitting pause on its tax incentives for data centers after lawmakers did not go for Gov. Pritzker's plan to raise electricity rates on these energy-hungry facilities.
The move is meant to keep local residents' utility bills from going up.
If a company already had an agreement before July 1, 2026, nothing changes for them, and local tax relief options are still on the table.
Pushback stalls $64B data center projects
This decision comes as pushback against new data centers grows nationwide: about $64 billion in projects have already been delayed or canceled.
Earlier this year, Naperville turned down a proposed center over concerns about higher utility costs.
Labor groups like Climate Jobs Illinois worry the pause could send investments and union jobs to nearby states like Indiana.
Unions say keeping the program would help boost local economies.