Chicago mayor Brandon Johnson calls for moratorium on new data centers amid nationwide backlash

Aug 11, 2026

Chicago Mayor Brandon Johnson signs an executive order on August 11, 2026, tightening regulations on data centers and calling for a temporary moratorium on new facilities. The move comes amid a nationwide backlash, with over 500 U.S. jurisdictions enacting restrictions due to concerns over grid strain, water consumption, and noise. While federal efforts seek to fast-track development, states like New York, Texas, and Ohio implement freezes and audits to manage the rapid expansion of AI infrastructure.

Chicago data center moratorium

▪Chicago Alderman Maria Hadden stated that she and other colleagues plan to introduce temporary data center moratorium legislation to the City Council as early as September 2026.
▪Chicago Mayor Brandon Johnson signed an executive order on August 11, 2026, to establish stricter regulations and a dedicated Data Center Task Force.
▪Chicago Mayor Brandon Johnson called on the Chicago City Council on August 11, 2026, to pass a temporary moratorium on new data centers and facility expansions.
▪The Chicago Mayor's August 11, 2026, executive order on data centers was based on policy recommendations issued in July 2026 by the City's Sustainable Data Centers Working Group.

Nationwide data center restrictions

▪A review by Heatmap News found more than 530 restrictive local laws across 42 states, with nearly 190 enacted since June 1, 2026.
▪Illinois cities including Bloomington, Normal, and Aurora have enacted moratoriums or restrictions on new data centers following resident complaints about noise and environmental impacts.
▪More than 500 United States jurisdictions have banned or restricted new data centers, with over 150 local bans passed in July 2026 alone, according to The Information.

Data center infrastructure impacts

▪Most data centers in the Chicago area rely on municipal drinking water for cooling equipment, which often evaporates during the process.
▪Chicago currently hosts approximately 39 data centers, while Illinois has the nation's fourth-largest inventory with 262 data centers.
▪Modern data centers place significant pressure on electricity grids and water systems, leading to rising energy bills and potential power shortages in Illinois.

Federal versus local conflict

▪The Maryland Tech Council argued that public fears regarding data centers are misunderstood or vastly overstated, warning against foreclosing a generational opportunity.
▪President Donald Trump has called data centers 'bigger than oil' and signed orders to fast-track them, creating a conflict with local restrictions.

State-level regulatory actions

▪New York Governor Kathy Hochul signed Executive Order 62 on July 14, 2026, freezing environmental permits for data centers of 50 megawatts or more for one year.
▪Texas Governor Greg Abbott directed state agencies to halt approvals for new data centers pending audits of their power and water demand.
▪Ohio Governor Mike DeWine implemented a statewide freeze on data center tax credits in May 2026.
▪Chicago Mayor Brandon Johnson urged Illinois state lawmakers to pass the stalled POWER Act to increase data center transparency and mitigate energy costs.