"The Illinois governor JB Pritzker proposed a two-year break from offering tax incentives for datacenters, a reflection of increasing public pushback against the massive, resource-hungry facilities used to power the modern AI boom. Pritzker made the proposal, which will need the backing of state lawmakers, during his annual state of the state address, which covers Illinois budget and policy plans. The plan was first reported by NBC News."
"In addition to calling for a suspension of tax incentives, Pritzker also demanded that northern Illinois power grid operator PJM mandate that datacenter developers assume the additional costs of their power demands. PJM must force datacenter developers to pay for capacity resources to power their operations to protect consumers from higher rates, Pritzker said. Much of Pritzker's speech, and especially its mention of datacenters, focused on the theme of affordability a central political narrative this year amid rising cost of living in the US"
Illinois will pause authorization of new datacenter tax credits for two years to address rising demand, surging prices, and local resource concerns. The governor linked datacenter growth to threats to energy affordability and stability for families. The governor asked PJM, the northern Illinois power grid operator, to require datacenter developers to assume the additional costs of their power demands and to pay for capacity resources to protect consumers from higher rates. Major tech firms such as Microsoft and Anthropic have pledged to cover rising power costs related to datacenter demand. Datacenters have become a contentious political issue amid affordability debates and bipartisan pressure before elections.
Read at www.theguardian.com
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