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Chicago has become the latest city to push back against new data center development. On August 11, 2026, Chicago Mayor Brandon Johnson signed Executive Order 2026-5, titled “Protecting Chicagoans’ Clean Water, Clean Air, Energy Affordability, and Quality of Life.” The Order establishes an enhanced regulatory framework for data center development in Chicago. In the Order, the Mayor calls on the City Council to enact a temporary moratorium on new data center construction and material expansions of existing facilities.

Key Takeaways from the Order

• Immediate Regulatory Action: Within 90 days of the Order’s effective date (approximately November 9, 2026, subject to potential extension by the Mayor), the Chief Sustainability Officer (CSO) must publish data center air pollution rules and noise rules under Section 8-32-090 of the Municipal Code. New air permit conditions will be addressed through annual certificates of operation.
• Moratorium Request: The Mayor has called on City Council to enact a temporary moratorium on new data center development and material expansion.
• Task Force Recommendations Due March 2027: The Data Center Task Force will develop comprehensive regulatory recommendations, including proposed Municipal Code amendments, by March 15, 2027.

Provisions of Executive Order 2026-5

• Sections 1 and 2 (Air Pollution and Noise Control): The CSO may impose conditions on air pollution control permits for regulated data center equipment and areas, and must review the noise framework under Section 8-32-090 of the Municipal Code. Within 90 days of the Order’s effective date (approximately November 9, 2026, subject to extension by the Mayor), the CSO must publish air pollution and noise rules through the applicable public notice process. Compliance with new air permit conditions will be addressed in annual certificate of operation applications under Section 11-4-660 of the Municipal Code.

• Section 3 (Enhanced Planned Development Review): For every proposed Planned Development that includes a data center, the Department of Planning and Development (DPD) must notify the Commissioners of Buildings, Business Affairs and Consumer Protection, Environment, and Water Management. Each has 60 days to provide written recommendations and proposed conditions, which DPD must include in any proposed Planned Development ordinance submitted to City Council. The review must consider projected electricity demand, water consumption, emergency and backup power generation, air emissions, noise impacts, cumulative environmental impacts, transportation impacts, emergency response capacity, and impacts on neighboring communities. Section 3 automatically rescinds when a City Council ordinance establishing a temporary moratorium on new data centers or material expansions becomes effective.

• Section 4 (Data Center Task Force): The Interdepartmental Data Center Environment and Community Protection Task Force (Data Center Task Force) is co-chaired by the CSO and the Mayor’s Chief of Police and includes representatives from Building, Environment, Planning and Development, Technology and Innovation, and Water Management, plus other designated City personnel. It will evaluate and, where appropriate, implement the Sustainable Data Centers Working Group’s recommendations, engage residents, subject-matter experts, and stakeholders, and provide recommendations and proposed Municipal Code amendments and rules to the Mayor by March 15, 2027 (or another date approved by the Mayor consistent with any moratorium timing), addressing permitting, impact controls, licensing, zoning, and reporting.

What does this mean to you?

Existing operators: Review current air pollution permits and prepare for new conditions at the next annual certificate of operation renewal.

If you have pending PD projects: Projects awaiting final City Council approval should expect enhanced cross-departmental review and possible delays if a moratorium is enacted.