Chicago Mayor Signs Order Tightening Data Center Regulations

Chicago Mayor Brandon Johnson signed an executive order on Tuesday to establish stricter regulations for future data center developments. The move follows public backlash regarding the high resource consumption of these facilities, of which Chicago currently hosts approximately 39.

The order mandates increased reviews of air pollution permitting, introduces new noise regulations, and creates a comprehensive vetting process to evaluate electricity demand, water usage, and neighborhood impact. While the executive order implements these new rules, Johnson requires City Council approval to enact a temporary moratorium on new data center construction.

This regulatory shift aligns with a broader trend of government responses to rapid data center growth. New York recently became the first state to issue a moratorium on hyperscale facilities, and Ohio Governor Mike DeWine implemented a freeze on data center tax credits in May.