Illinois Governor JB Pritzker ordered a pause on state tax incentives for data centers after the legislature stalled a plan to keep high energy costs from raising local utility bills. Pritzker framed the action as responding to insufficient returns on electricity and water demands. The move followed similar action in Ohio and comes amid community opposition to new data center projects that critics say strain energy and water resources. Unions and Climate Jobs Illinois urged Pritzker to reverse the pause, arguing it would shift investment and construction jobs to other states. For higher education and research institutions, the decision signals continuing volatility in the incentives and permitting environment that supports AI and computing infrastructure—factors that can affect campus research computing plans and local partnerships.