Illinois Governor J.B. Pritzker announced during his recent “State of the State address” that he was calling for a two-year pause on the state’s tax credit program for data centers.

The proposal follows increased public concern regarding the environmental and utility impact of hyperscale facilities. Pritzker’s move would directly impact the existing data center tax credit program. Illinois is home to more than 200 data centers across the state.

Key aspects of the proposal include a two-year pause of the tax credit program for new data centers, starting July 1, to allow the state to study the impact of existing centers on energy and the economy. Illinois’ General Assembly must approve Pritzker’s proposal. According to JLL’s 2026 Global Data Center Outlook, the global data center sector is poised for continued expansion, with capacity expected to nearly double by 2030.