Chicago Mayor Demands Data Center Moratorium After Backlash
(Bloomberg) -- Chicago Mayor Brandon Johnson is pushing for a temporary moratorium on data centers, and signed an executive order on Tuesday to create new rules for any future developments.
The progressive Democrat’s order includes an increased review of air pollution permitting, additional rules on noise created by data center equipment, and a more thorough vetting process for future data centers that would consider water use, electricity demand and impact on neighborhoods, among other items. Johnson needs city council approval for a moratorium. Chicago is already home to about 39 data centers, according to the mayor’s office.
Last year, the former headquarters of Cboe Global Markets Inc. was sold to a company that specializes in data centers.
“Chicago will not allow unchecked development to strain our water supply, drive up energy costs, or compromise the health of our communities,” Johnson said in the emailed press release. “We are open to innovation and investment, but it must be done responsibly, transparently, and in partnership with the people most affected.”
Johnson is the latest official to respond to the growing backlash against data centers and the impact of their water and energy uses on municipalities. Ahead of the midterm elections, both Democrats and Republicans are trying to address concerns over high energy costs. Last month, New York became the first state to issue a moratorium on new hyperscale data centers, and Ohio Governor Mike DeWine, a Republican, implemented a statewide freeze on tax credits in May.
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