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 issue during the veto session in mid-November. 

“Data centers are asking just too much for too little in return, whether it’s electricity or clean water,” Pritzker said in a video posted on X. “We can’t let them cause our utility bills to go up.” 

Ohio paused tax incentives for data centers on Wednesday. Governor Mike DeWine ordered a halt to a program offering tax breaks while a committee studies the economic impact of the projects. 

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