Pritzker pauses data center tax incentives, raising local control concerns
Pritzker’s July 1 pause on new data-center incentives lands as Morgan County already weighs a six-month moratorium and tighter control over land, power and water.
In Morgan County, where leaders have already put a six-month hold on large-scale data centers, Gov. JB Pritzker’s move to stop processing new state incentive agreements starting July 1 could shape how hard developers keep pushing for local land, power and water.
The state’s data center investment program offers exemptions from a variety of state and local taxes, along with a 20% construction-wage tax credit for projects in underserved areas. Created by Public Act 101-31 and in effect since June 28, 2019, the program is designed to support large-scale facilities with 20-year tax exemptions issued in five-year increments if companies stay in compliance.
That matters in Morgan County because the local fight has already moved beyond abstract planning. On April 27, the county approved a six-month moratorium on large-scale data centers. At the Morgan County Board meeting on May 27, supporters of the moratorium showed up as the board approved new solar and wind ordinances and pushed data-center rules to later this year. The pause from Springfield now gives county officials more room to decide whether any future project fits the rural landscape near Jacksonville, and on what terms.
The state action also feeds a broader question of local control. If the incentive program is on hold, counties weighing zoning changes or moratoriums may have more leverage before a developer can lock in tax benefits that often drive these projects. That could affect the kind of industrial growth Morgan County is willing to court, as well as expectations for roads, utility upgrades, and the long-term tax picture promised by a single campus.
The concern is not limited to Morgan County. Illinois lawmakers introduced the POWER Act in February to regulate new hyperscale data centers’ power and water use, but the bill will not move forward this spring. Meanwhile, Illinois Clean Jobs Coalition polling cited by WGLT found 70% support for tighter regulation of data centers, rising to 75% after the bill’s provisions were explained.
Utility pressure is part of why the debate has sharpened. A Synapse Energy Economics analysis said Commonwealth Edison told a Senate hearing in April 2025 that it had 14 gigawatts of data-center projects in its queue. A Union of Concerned Scientists report estimated that from 2026 to 2050, data-center load growth could raise Illinois electricity-system costs by $24 billion to $37 billion.
For Morgan County residents, the state pause is not just a Springfield maneuver. It is a signal that the fight over who decides, who pays and who benefits from data-center growth is now moving closer to home.
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