Mayor Johnson Orders Stricter Data Center Regulations in Chicago

Mayor Brandon Johnson has enacted an executive order to enhance the regulation of new data centers in Chicago. This move, politically charged yet not imposing outright restrictions, might impede the industry’s rapid expansion.

The order mandates the city administration to tighten air pollution analyses, introduce noise limitations, and broaden the authority of city officials to scrutinize the water and electricity consumption of data centers. However, there is no prohibition on new construction. This more stringent measure would need the City Council’s approval. Johnson urged the council to instate a moratorium on new data center projects while formulating comprehensive regulations.

Johnson emphasized the timing of this initiative, stating, “This is a newer phenomenon, and we want to get as out front of this matter as fast as we possibly can.” He highlighted that the moratorium is essential to ensure data centers don’t progress while the City Council takes intentional steps to develop the necessary protections. During a news conference, Johnson asserted, “Chicagoans must come first” as the city aims to set industry terms amid a nationwide surge in data center construction fueled by artificial intelligence.

He stressed, “Chicago will not be passively shaped by this new industry. We will lead and actively set the terms for how this technological development occurs.” He added that Chicago residents have clearly expressed their desire for stringent protection against unchecked data center expansion.

“Chicago will not be passively shaped by this new industry. We will lead and actively set the terms for how this technological development occurs,” said Johnson.

The executive order is Chicago’s strongest action yet against the controversial facilities, which have been criticized for their noise, pollution, and high water and electricity use. As aldermen consider a proposed ordinance requiring data centers to disclose usage data, Johnson’s order complements these efforts. Alderman Maria Hadden, head of the City Council Environmental Committee, stated that her proposal aligns with Johnson’s order.

Mayor Johnson’s action received visible support from several progressive aldermen, signaling a rare alignment despite past tensions. During the announcement, a moment of humor arose as Alderman Lamont Robinson held out a chair for Johnson, who joked, “Finally, I’ve got an alderman that has my back.”

Amidst a strained relationship with aldermen post-budget battles, positioning himself as a protector against unchecked industry growth might provide Johnson with a rare consensus area. It could resonate positively with voters for his upcoming reelection campaign.

Johnson also called on state legislators to pass the POWER Act, aimed at overseeing large-scale data centers more likely to be built outside of city limits. He argued that Chicago’s access to the Great Lakes, one of the largest freshwater bodies globally, should take precedence over industry interests. “This is the best place to do business, and the proof is in how we have produced, but again, development cannot happen at the expense of working people,” he noted.

Amidst rising demand, Chicago currently hosts 39 data centers. A recent proposal suggested placing a data center in the historic 300 W. Adams St. building, illustrating the industry’s growth potential. The executive order follows recommendations from the Sustainable Data Centers Working Group, a city panel of department leaders, environmental advocates, and industry executives. These recommendations shed light on concerns over electricity costs and the potential hindrance to Chicago’s climate goals.

Sarah Moskowitz, executive director of the Citizens Utility Board, warned, “Our electric bills have already gone up because of data centers and will continue to do so unless policymakers at multiple levels take action.”

Environmental activists like Iyana Simba from the Illinois Environmental Council praised Johnson’s move. She highlighted the critical issues data centers pose, such as increased bills, grid reliability threats, and community health risks, stressing the need for action.

The press conference was held on Northerly Island, an area transformed by former Mayor Richard M. Daley in 2003 into a public park. Angela Tovar, Commissioner of the Department of Environment, reflected on this symbolism, underscoring Chicago’s power to make strategic growth decisions.

Tovar commented, “This is a place the city reclaimed and reimagined, a place where we chose to prioritize green space, nature, and the health of Lake Michigan over what was built here prior.” She underscored the city’s historical capacity for deliberate growth choices.