Chicago Mayor Signs City Executive Order Creating Enhanced Regulatory Review for Data Centers, Calls for Temporary Moratorium

Go-To Guide:
  • The executive order took effect immediately upon publication and directs enhanced regulatory review of data center development in Chicago.
  • The city’s chief sustainability officer must promulgate both air pollution and noise rules within 90 days (unless the mayor grants an extension).
  • The city’s Department of Planning and Development (DPD) must conduct enhanced review of all planned developments that include data centers, with mandatory 60-day departmental consultation.
  • The Data Center Task Force must deliver recommendations and proposed regulatory language by March 15, 2027, subject to extension by the mayor.
  • The proposed moratorium and material expansion standard may create pipeline and construction schedule risk.
  • Stakeholders may wish to assess entitlement and transaction exposure, participate in rulemaking, and monitor the city’s legislative efforts.

Executive Order Summary

On Aug. 11, 2026, Chicago Mayor Brandon Johnson signed Executive Order No. 2026-5 (the order), directing city departments to take immediate steps to strengthen oversight of data center development and calling on the Chicago City Council to enact a temporary moratorium on new data centers and the material expansion of existing facilities. The order took effect immediately upon publication and imposes enhanced requirements for air pollution permits, noise control, and planned development review while the city develops a comprehensive regulatory framework.

The order follows an 18-month review by the city’s Sustainable Data Centers Working Group, established pursuant to City Council Ordinance SO2024-0008201. The working group issued its final report in July 2026, recommending that the city adopt a comprehensive policy framework to ensure that future data center development aligns with Chicago’s environmental, economic, infrastructure, and community priorities. Chicago currently has approximately 39 data centers, the majority of which are enterprise or colocation facilities located in or near the central business district. The city states that its existing regulations were adopted before the emergence of modern data centers and do not adequately address data centers’ demands on the electrical grid, water resources, air quality, public infrastructure, or surrounding communities.

Air Pollution Control and Noise Regulations

Per the requirements in the order, the city’s chief sustainability officer, who also serves as commissioner of the Department of Environment, must impose conditions on air pollution control permits for regulated equipment and areas at data centers, including conditions directed at emissions from diesel backup generators such as particulate matter, nitrogen oxides, and carbon monoxide. The chief sustainability officer must also review the city’s existing regulatory framework for noise emissions from mechanical stationary sources at data centers, including cooling equipment, diesel emergency generators, and other mechanical systems. Within 90 days of the order’s effective date, subject to extension by the mayor and following the applicable public notice process, the chief sustainability officer must publish rules governing data center air pollution control permits and rules for the administration and enforcement of the city’s noise provisions as applied to data centers. Certificates of operation must reflect compliance with the strengthened air pollution permit conditions.

Planned Development Review

The commissioner of the DPD must ensure that every proposed planned development that includes a data center receives enhanced review. In evaluating proposals, the DPD commissioner must specifically consider projected electricity demand, water consumption, emergency and backup power generation, air emissions, noise, cumulative environmental impacts, transportation impacts, emergency response capacity, and impacts on neighboring communities.

Upon receipt of a planned development application that includes a data center, the DPD commissioner must promptly notify the commissioners of Buildings, Business Affairs and Consumer Protection, the Environment, and Water Management. Each notified department must provide written recommendations within 60 days (or another period, as arranged with DPD) identifying conditions appropriate to protect public health, safety, affordability, the environment, and the general welfare. After consultation between the relevant departments, the DPD commissioner must include in any proposed planned development ordinance all conditions identified by the commissioners. Section 3 of the order automatically rescinds if the Chicago City Council enacts a moratorium on new or expanded data centers.

Task Force

The order establishes an Interdepartmental Data Center Environment and Community Protection Task Force, co-chaired by the chief sustainability officer and the mayor’s chief of policy. The task force includes representatives from the city’s Department of Buildings, Department of the Environment, Department of Planning and Development, Department of Technology and Innovation, and Department of Water Management…

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