Chicago and Palm Beach County Implement AI Data Center Moratoriums

Local governments in Chicago and Palm Beach County have both implemented one-year moratoriums on the development of new data centers to address environmental and community concerns.

Brandon Johnson, the Mayor of Chicago, proposed an ordinance this week to pause new data center construction for 12 months. This measure follows an August executive order creating a city task force to study electricity costs, pollution, and water usage. City Council Environmental Committee chair Maria Hadden is cosponsoring the ban and has introduced a separate requirement for existing facilities to report their annual energy and water consumption.

In Florida, the Palm Beach County Board of County Commissioners unanimously approved a moratorium on September 24, 2026, targeting hyperscale AI data centers using at least 50 megawatts of power. The ban, effective until September 2027, follows the July rejection of Project Tango due to concerns over noise pollution and risks to the Everglades ecosystem. Future regulations may include power consumption caps and mandatory operator disclosure.

Reactions to these pauses are divided. In Chicago, Illinois Comptroller Susana Mendoza opposed the moratorium, suggesting that some data centers use less water than golf courses. In Palm Beach County, officials emphasized the need for expert consultation and task forces to monitor evolving technology before permanent rules are established.