Illinois Municipalities Weighed Data Center Moratoriums

State lawmakers look to resolve building transparency issues following the failed passage of the POWER Act.

Updated on Oct. 6, 2026 in Data Centers

Isometric editorial illustration of a steel cooling unit for data infrastructure, centered on a gray concrete slab. — Illinois municipalities are exploring moratoriums on data center construction after the General Assembly failed to pass the POWER Act in June 2026. AI Illustration. Upload story photo >

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Should local communities have more authority to block or regulate large data center projects?

Illinois municipalities are weighing moratoriums on data center construction following the General Assembly's failure to pass the POWER Act before its spring session ended on June 1, 2026. Governor J.B. Pritzker has since pushed for uniform state-level regulations to address persistent concerns regarding project transparency.

Why it matters

The push for new regulation stems from the widespread use of non-disclosure agreements during property acquisition, which often obscures the impact of large-scale infrastructure on local communities. While data centers in Sycamore have demonstrated a decrease in the local property tax levy, the lack of standardized oversight continues to drive friction between developers and local governments.

Legislators have identified a six-day veto session in late 2026 to revisit the stalled POWER Act. This follows an initial period where infrastructure deployment proceeded without the unified transparency benchmarks sought by state officials.

The players

J.B. Pritzker

The Governor of Illinois who is advocating for the implementation of uniform state regulations for data center construction.

Illinois General Assembly

The state legislative body responsible for debating and passing infrastructure policy and the stalled POWER Act.

The details

Data center developers frequently rely on non-disclosure agreements—legal contracts that prohibit the sharing of confidential information—during property acquisition to secure land without tipping off competitors. This practice prevents local communities from conducting public reviews of the project's impact on infrastructure and local utility demand. Because the POWER Act failed to clear the assembly, municipalities lack a statewide framework to require disclosure, forcing individual towns to consider construction moratoriums as a temporary safeguard.

June 1, 2026: The Illinois General Assembly spring session concluded.
November 17-19, 2026: The veto session begins in Springfield.
December 1-3, 2026: The veto session continues in Springfield.

The Tech Race

The Illinois General Assembly's debate over the POWER Act mirrors legislative struggles in other states to balance digital infrastructure growth with community transparency. The outcome of the upcoming veto session will determine if Illinois establishes a standardized regulatory moat for data center expansion.

Residents in districts currently targeted for data center development may see construction pause until state-level clarity is provided during the winter legislative session. Local property owners should monitor upcoming town council meetings for potential moratorium votes that could affect future land-use and tax-revenue models.

The takeaway

The tension between local property tax benefits and corporate transparency remains the primary friction point in Illinois infrastructure policy. Readers should track the November 2026 veto session for the final text of the POWER Act, which will likely dictate the future of municipal oversight in the state.

What happens next

The Illinois General Assembly will return to Springfield to address the POWER Act during a six-day veto session scheduled across November 17-19 and December 1-3, 2026.