Chicago Mayor’s Executive Order to Regulate Data Centers

Mayor Brandon Johnson has issued an executive order aimed at increasing the scrutiny of new data centers in Chicago. This is intended to address the fast-growing industry without imposing an outright ban, though it might slow its development.

The directive mandates stricter evaluations of air pollution and introduces noise restrictions. There is also a focus on expanding the city’s ability to review water and electricity usage at these facilities. However, the order does not place a cap on new constructions. A more stringent ban would require City Council’s approval, which Johnson is urging by calling for a temporary halt on new projects until comprehensive rules are devised.

“This is a newer phenomenon, and we want to get as out front of this matter as fast as we possibly can,” Johnson said.

At a news conference, Johnson emphasized that the interests of Chicago residents are paramount. He stated that the city aims to set its standards in the data center industry influenced by the rise in artificial intelligence, which drives data center construction nationwide.

“Chicagoans have been absolutely clear: They do not want data centers expanding across our city without strong protection,” he mentioned.

This executive order represents Chicago’s strongest stance against these facilities, which are often criticized for noise, pollution, and heavy resource consumption. Meanwhile, City Council is expected to consider an ordinance next month. Ald. Maria Hadden proposed this in July, requiring data centers to disclose their electricity and water usage, complementing Johnson’s order.

According to Heatmap Pro, a clean energy news source, over 530 counties and municipalities in the nation have either blocked or imposed significant restrictions on data centers. In Illinois, six towns have canceled data center plans, and 13 have placed moratoriums or restrictions.

During the order’s announcement, support came from several progressive aldermen. This was significant given the sometimes-strained relationship between the mayor and the council. The mayor’s stance may align him with state legislators as he calls for the passage of the POWER Act, aiming to regulate large “hyper-scale” data centers outside the city.

Johnson stressed the importance of protecting the Great Lakes, highlighting, “Development cannot happen at the expense of working people.”

Chicago currently maintains 39 data centers, with more expected due to rising demand. One proposal considers placing a center in a Loop building at 300 W. Adams St., a landmarked site.

The order aligns with recommendations from the city’s Sustainable Data Centers Working Group, which was formed last year. This panel includes city officials, environmentalists, and industry representatives, who have raised concerns about the impact of data centers on energy costs and climate goals.

Environmental activists, including Iyana Simba from the Illinois Environmental Council, have praised Johnson’s decision.

“We are hearing horror stories across the state, across the city, across the country about AI data centers driving up bills, threatening the reliability of our grid, polluting our air, straining our water supply and frankly jeopardizing the health of communities,” Simba commented.

The news conference took place at Northerly Island, symbolically significant as the site where former Mayor Richard M. Daley drastically transformed Meigs Field into a park and sanctuary. Angela Tovar, from the Department of Environment, emphasized the city’s history of making deliberate choices to prioritize green spaces.