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Democrat Governor To Temporarily Pause Data Center Tax Breaks
Illinois Gov. JB Pritzker plans to temporarily suspend tax breaks for new data center developments in the state.
According to NBC News, Pritzker “intends to call on lawmakers and other groups to hash out a framework in the fall veto session for how the centers should be developed.”
Illinois Gov. JB Pritzker plans to temporarily halt offering tax breaks to data centers that apply to build in the state and intends to call on lawmakers and other groups to hash out a framework in the fall veto session for how the centers should be developed.…
— NBC News (@NBCNews) June 5, 2026
NBC News explained further:
In a plan first shared with NBC News, Pritzker will announce he will pause the processing of any applications to the tax incentive program handled by the Illinois Department of Commerce and Economic Opportunity beginning July 1.
Pritzker called on state lawmakers this year to suspend incentives for two years while they hammer out a comprehensive review of the impact centers are having on communities.
Pritzker is making the move after lawmakers did not act. The governor cannot unilaterally halt the program, but the executive branch does wield some control over processing applications, according to his office.
By taking on the massive buildings that power artificial intelligence, Pritzker, who is running for a third term and is widely viewed as having 2028 White House aspirations, is tapping into an issue seen as important to voters.
“JB Pritzker has given over $1 billion in tax breaks to data centers, at one point making us the #2 state for data centers in the country (we’re #4 now). All with no guardrails to protect local residents or regulate energy or water usage. So it’s no surprise to see the room packed with opponents when a 3rd data center campus was being proposed in Hoffman Estates,” said independent Illinois gubernatorial candidate Collin Corbett.
“Pritzker and Springfield failed to pause tax incentives for data centers and failed to put in place common sense regulations that ensure data centers pay all their energy costs, limit water usage, and contribute to a property tax relief fund for Illinoisans. Vote Independent in November and we will get it done,” he added.
Watch below:
JB Pritzker has given over $1 billion in tax breaks to data centers, at one point making us the #2 state for data centers in the country (we're #4 now). All with no guardrails to protect local residents or regulate energy or water usage.
So it's no surprise to see the room… pic.twitter.com/hQa4zL2F2H
— Collin Corbett (@CollinCorbett) June 4, 2026
“Illinois has an opportunity to continue leading in technological innovation and economic growth, but we also have a responsibility to protect working families and local communities as the data center industry rapidly expands,” Pritzker said in a statement, according to NBC News.
“I am directing my administration to pause the processing of data center agreements while we continue working with the General Assembly and stakeholders on a comprehensive framework that protects affordability, safeguards our natural resources, and ensures responsible growth across Illinois,” he added.
NewsNation noted:
Other states have taken similar action to address the impacts, which largely affect rural communities. In April, lawmakers in Maine passed a bill imposing a moratorium on new data centers in the state.
In addition to pausing the tax incentive program, Pritzker intends to work with several groups, including legislators, consumer advocates, labor organizations and more, during a veto session to devise “comprehensive reforms.” Some of these reforms Pritzker hopes for include placing more of the financial burden onto data centers and making them generate and pay for their own clean energy resources.
Existing incentive agreements in Illinois, including those submitted before July 1, 2026, will be honored.