Key facts
- Illinois Governor J.B. Pritzker is pausing data center tax incentives.
- The pause begins in July.
- The decision is driven by concerns over electricity costs and water resources.
- State officials are directed to pause agreements under the Data Center Investment Program.
Illinois Governor J.B. Pritzker announced on Friday that the state will pause its data center tax incentives starting in July. This decision comes as a response to nationwide concerns regarding the electricity costs and water resources impacted by the buildout of artificial intelligence infrastructure. Governor Pritzker has directed state officials to halt new agreements under the Data Center Investment Program, which previously offered exemptions for data centers.