Trade unions and business groups in Chicago are joining forces to oppose Mayor Brandon Johnson’s proposed one-year moratorium on new or expanded data centres, warning that the pause could damage job growth and innovation.
Marc Poulos, executive director of Operating Engineers Local 150, said the alliance was preparing to challenge the proposal, which would halt the issuing of permits and approvals while the city develops a wider regulatory framework for the industry.
The ordinance, introduced by Mr Johnson and three City Council members on September 23, remains under consideration and has not yet taken effect. It was referred to the council after being formally introduced.
Labour representatives argue that suspending development would threaten construction work and other employment linked to data centre projects at a time when the sector is attracting major investment. Business groups have also raised concerns about the effect on Chicago’s competitiveness and its ability to attract technology companies.
Chicago data centre moratorium faces opposition
Mr Johnson has said the proposed moratorium is intended to give a mayoral task force time to examine the industry’s impact on water supplies, energy use, clean air and residents’ quality of life.
The mayor has maintained that Chicago remains open to investment and innovation, but that future growth must be subject to stronger protections for local communities and the environment.
The proposal has already prompted disagreement within City Hall. Alderman Bill Conway has advocated immediate regulation instead of a temporary halt, arguing that the moratorium could face legal challenges and leave the city without effective oversight while any dispute was resolved.
Both the mayor’s proposal and Mr Conway’s alternative would need to pass through the City Council before becoming law. The labour and business coalition opposing the moratorium is expected to press aldermen to reject the pause and pursue rules that allow projects to proceed under tighter conditions.
