(NBC NEWS) - Illinois Gov. JB Pritzker on Friday plans to temporarily halt offering tax breaks to data centers that apply to build in the state and intends to call on lawmakers and other groups to hash out a framework in the fall veto session for how the centers should be developed.
In a plan first shared with NBC News, Pritzker will announce he will pause the processing of any applications to the tax incentive program handled by the Illinois Department of Commerce and Economic Opportunity beginning July 1.
Pritzker called on state lawmakers this year to suspend incentives for two years while they hammer out a comprehensive review of the impact centers are having on communities.
Pritzker is making the move after lawmakers did not act. The governor cannot unilaterally halt the program, but the executive branch does wield some control over processing applications, according to his office.
By taking on the massive buildings that power artificial intelligence, Pritzker, who is running for a third term and is widely viewed as having 2028 White House aspirations, is tapping into an issue seen as important to voters.
“Illinois has an opportunity to continue leading in technological innovation and economic growth, but we also have a responsibility to protect working families and local communities as the data center industry rapidly expands,” he said in a statement. “I am directing my administration to pause the processing of data center agreements while we continue working with the General Assembly and stakeholders on a comprehensive framework that protects affordability, safeguards our natural resources, and ensures responsible growth across Illinois.”
An NBC News poll this year revealed that nationally, Americans believe the dangers of AI outweigh its benefits. The proliferation of data centers has sparked controversy across the country. An expanding number of states are trying to curb their development, while others are trying to end tax breaks.
Pritzker has raised concerns that data centers are being constructed so quickly, and he has said the state must better understand the impact they are having on consumer utility bills and water consumption. He has called for the state to erect guardrails to protect consumers.
Pritzker will call on the Legislature, labor groups, utility companies, local governments and industry leaders Friday to come up with comprehensive reforms to the development of data processing centers. They include having data centers “pay their fair share,” according to documents from the governor’s office, as well as protecting natural resources and ensuring a reliable energy grid. Pritzker is also calling for transparency, saying communities should know ahead of time how much water and electricity the centers would consume.
