Pritzker defends pause on data-center tax credits, pushes legislature to pass 'Power Act'

Gov. J.B. Pritzker said he put a pause on tax credits for large data centers to prevent companies from shifting costs onto Illinois ratepayers and communities. Speaking at a climate forum, Pritzker said data-center operators must be required to "bring energy with you if you're gonna come," and to use closed-loop systems to avoid straining local water supplies and utility customers.

Pritzker said Illinois introduced incentives in 2019 to create parity with other states and attract jobs, but that some companies have "taken too much advantage" of those incentives. He urged lawmakers to pass a negotiated Power Act to set restrictions and requirements for builders and operators, saying the legislature "has to do its job" and that the bill could pass in the next session with further negotiation. "I'm gonna take away benefits that you were getting before until we get something like the Power Act put in place so we're protecting communities," he said.

The governor framed the pause as intended to protect affordability for residents while still allowing economic growth. He emphasized local control and said communities are increasingly raising concerns at city council and county board meetings about electricity bills and noise from data centers. Pritzker also referenced a memorable shorthand in the bill, the so-called "Beyonce" provision, to describe a build-your-own-energy requirement for large users.