Governor JB Pritzker is putting the brakes on new state agreements for data center projects as lawmakers continue debating how to regulate the rapidly growing industry.

The Governor announced Thursday that the Illinois Department of Commerce and Economic Opportunity will pause processing new agreements under the state's Data Center Investment Program beginning July 1st.

The move comes as data centers have become a topic of discussion in several Illinois communities, including Christian County, where local officials have been exploring the possibility of attracting a future data center project.

Pritzker says Illinois must balance economic development with concerns about electricity costs, energy reliability, water usage, and environmental impacts. The Governor says data centers can consume as much electricity as a mid-sized city and, in some cases, millions of gallons of water per day.

The administration is calling for a comprehensive statewide policy that would require data centers to pay more of the infrastructure costs they create, support the development of new clean energy sources, and provide greater transparency to local communities.

The Governor is also proposing a pause on state tax incentives for future data center developments while lawmakers continue studying the industry's long-term impact.

Existing incentive agreements already approved by the state will not be affected.

Pritzker is urging legislators, consumer advocates, local governments, utilities, environmental groups, labor organizations, and industry leaders to work together on legislation during the fall veto session.

While this announcement does not prevent a data center from locating in Christian County, it could affect future state incentive agreements that developers may seek as part of a project.