Real Estate
Home›Real Estate›Industry›Chicago faces data center scrutiny as permits, power a…
Chicago faces data center scrutiny as permits, power and water reviews expand
An executive order from Mayor Brandon Johnson would require city reviews to assess power demand, water use, noise and emissions, alongside air pollution-control permits and cooling equipment noise limits.
Public backlash against data centers is intensifying in Chicago and across Illinois, putting local elected officials in a difficult position, according to Bisnow. The outlet reports that officials are weighing voter opposition to new development against promises by data center operators of millions of dollars in investment.
Bisnow says Chicago Mayor Brandon Johnson issued an August executive order that would add conditions to the city’s review process for data center developments. The order requires data center reviews to include air pollution-control permit conditions and noise regulations for cooling equipment, and it mandates assessments covering power demand, water use, and noise and air emissions.
The administration is also pursuing a moratorium on new or expanded data centers while it updates regulations, but Bisnow notes any moratorium would require city council approval through an ordinance. University of Illinois Chicago’s Michael Bennett said many projects have come with major subsidies, and that during election cycles voters focus on candidates’ views on regulation, transparency, and tax breaks.
Bisnow adds that Chicago’s role as a data center hub has started to slide in recent years, citing JLL rankings that fell from second or third for total capacity between 2017 and 2022 to seventh in 2025. The outlet also points to 39 data centers within city limits, and 114 facilities tracked in Cook County, with 11 more in the development pipeline, according to a U.S. Data Center Map.