Data centers emerging as key issue in Illinois governor race

When Gov. JB Pritzker signed tax incentives for data centers into law in his first year as governor in 2019, Republicans and Democrats celebrated the plan as an economic driver. “In today’s world, data centers are as critical a part of our infrastructure as our roads, trains and schools,” Pritzker said in October 2019. “With the legislation I signed into law, we are welcoming a surge of economic development, labor income, and good union jobs to Illinois.” Now, eight years and nearly two full terms later, the governor has paused those incentives as the onset of data centers has stressed energy and water resources and public opinion has swiftly turned against the tech behemoths. At the crux of the changing debate on data centers is the advent of artificial intelligence. The technology requires a new class of data center: hyperscale, always-on facilities that require massive amounts of energy. “We weren’t talking about AI hyperscalers back in 2019,” Pritzker said at an unrelated news conference earlier this month. “I’ve already taken action. We’ve taken away the data center tax credits that existed, but it’s with the goal of getting legislation that will ensure that the people of Illinois, the businesses of…