CHICAGO (WLS) — Mayor Brandon Johnson signed an executive order Tuesday aimed at creating new regulations for data centers in Chicago, citing residents’ concerns about how the fast-growing industry could affect neighborhoods, utilities and quality of life.

The move comes two years after the city approved an ordinance establishing a working group to study data center growth and recommend policy changes. Johnson’s executive order incorporates some of those recommendations and sets up a new task force to develop long-term strategies for future projects.

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Chicago currently has 39 data centers of varying sizes, including a large facility on 30 acres along the south branch of the Chicago River on the Near Southwest Side. Industry executives say another three to five centers are planned, including one proposed in the Illinois Medical District to serve nearby hospitals and research institutions.

At the signing, Johnson said residents have made their expectations clear.

“Chicagoans have been absolutely clear; they do not want data centers expanding across our city without strong protection for their communities, their utility bills, their air, water, and their quality of life,” he said.

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Johnson is also urging the City Council to enact a temporary moratorium on new data center projects while additional guidelines are drafted.

“The City Council’s authority to place a moratorium on data center development and advancement at this time just makes sense as we work to create regulations around this new form of technology,” he said.

Some alderpersons say the city must balance regulation with the economic benefits data centers bring.

“Listen, at the end of the day, a data center is a warehouse with servers in there, and these data centers create tons of property tax revenue, create tons of jobs for the building trades, and so there has to be a delicate balance,” said Ald. Gilbert Villegas, chair of the Zoning Committee.

Villegas said the industry is seeking stability so companies know how and under what conditions they can pursue development.

The City Council is not scheduled to meet again until September, and crafting a new ordinance could take time. Villegas said he believes a proposal could be ready for a vote before the end of the year.

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