Illinois Governor Calls for 2-Year Pause on Data Center Tax Credits

Pritzker cites concerns over growing energy costs for consumers and affordability

Published on Feb. 23, 2026

Got story updates? Submit your updates here. ›

Illinois Governor J.B. Pritzker announced a proposal to pause the state's tax credit program for data centers for two years during his 'State of the State' address. The governor cited concerns over growing energy costs and affordability for families as the reason for the proposed pause, which comes amid public pushback over the environmental and noise impacts of data center expansion in the state.

Why it matters

The data center industry has seen rapid growth in Illinois, with over 200 facilities across the state. However, this expansion has led to concerns about rising energy costs and environmental impacts that the governor is now seeking to address through the proposed tax credit pause.

The details

Pritzker's proposal would directly impact the existing data center tax credit program in Illinois. The governor argued that 'electricity is eating up more and more of household budgets across the country' and that the state's 'growth does not undermine affordability and stability for our families.' This comes as new legislation is being introduced in Springfield to address the increasing costs to consumers and environmental impacts of data center expansion.

  • On February 19, 2026, Governor Pritzker announced the proposed two-year pause on data center tax credits during his 'State of the State' address.

The players

J.B. Pritzker

The Governor of Illinois who proposed a two-year pause on the state's data center tax credit program.

Data Center Coalition

An industry group that responded to the governor's proposal, stating that the 'proposed pause... could further discourage investment at a time when the industry is facing significant regulatory challenges and uncertainty in Illinois.'

Illinois Clean Jobs Coalition

A coalition that supports the governor's proposal to pause data center tax credits.

Noah Dormady

An Ohio State economist who warned that 'capacity prices are going to continue to accelerate capacity prices on their retail bill going forward' due to speculation on future data center growth.

Got photos? Submit your photos here. ›

What’s next

The Illinois legislature will need to consider and vote on the governor's proposal to pause the data center tax credit program for two years.

The takeaway

Governor Pritzker's proposal to pause data center tax credits in Illinois reflects growing concerns over the impact of the industry's rapid expansion on energy costs and affordability for families. This move comes amid public pushback and new legislation aimed at addressing the environmental and financial burdens of data center growth in the state.