Ottawa, Illinois, is pressing pause on one of the most resource-intensive types of development in the country.
City leaders voted to extend a temporary moratorium on data centers through August 25, 2027, while they await Illinois's decision on whether to implement statewide rules.
The decision gives the city more time to decide what kind of growth it wants as residents raise concerns about energy demand, water use, and rising utility costs.
Here's what to know
According to Shaw Local, the moratorium remains in effect across all zoning districts after a unanimous City Council vote.
Ottawa first paused this type of development while state lawmakers were considering the POWER Act. That proposal, intended to address the electricity and water demands associated with data centers, stalled during the spring legislative session.
Mayor Robert Hasty said the city has been drafting its own ordinance for any future data center proposal. But officials want to know what Illinois does first before finalizing local requirements.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
"We have some questions as to what direction the state of Illinois is going to be going towards them," Hasty said. "We have been working on an ordinance that would put into place what the requirements would be, should a data center choose to want to come here. But again, we don't want to [move] forward and pass that until we know what the state of Illinois would be doing. Otherwise we're just repeating numbers here."
Data centers can require enormous amounts of electricity and cooling water. With ComEd and Ameren customers already facing pressure from regional grid capacity costs, moratoriums may be among the only immediate tools local officials have to limit the extent to which new large-scale demand is added.
More background
Ottawa is far from the only community grappling with the issue, but nearby cities and counties are taking sharply different positions.
When the La Salle County Board examined possible parameters for future projects in April, the debate quickly showed how divided local officials are.
Board member James Reid made his stance clear: "I don't care how we write it. I'm going to vote against every data center that comes near La Salle County."
Other local leaders have taken a more open approach.
Elsewhere, some officials are signaling interest rather than resistance.
Mendota Mayor Dave Boelk said, "We are not considering a ban," adding that the city is "open to business."
La Salle Mayor Jeff Grove said his city is receptive to data centers, noting, "As we learned about it, a lot of that water gets reused. So it's not like brand new stuff every time."
The divide reflects a broader tension playing out across the country. Supporters often point to construction jobs, tax revenue, and the digital infrastructure needed for everything from cloud computing to AI.
Critics, meanwhile, warn that communities can be left with added strain on local power systems and water supplies, with those costs ultimately landing on households.
What's being done?
For now, Ottawa's main strategy is simple: more time.
Keeping the moratorium in place lets the city avoid adopting rules now that might later clash with whatever the state eventually passes.
A more lasting solution will likely require both state and local action. State standards could establish minimum expectations for energy efficiency, water use, and grid planning, while local ordinances could focus on siting, public input, and infrastructure concerns unique to each community.
That kind of framework could also address one of the most common criticisms of moratoriums — the idea that they drive away investment altogether.
Cities could require stronger safeguards, including clear water reporting, responsible cooling practices, and infrastructure commitments before projects move ahead.
Hasty said the city wants safeguards in place before development moves forward: "Once we know what they've passed, then we can look at any kind of ordinance and make sure that we're protecting the citizens."
Where can I learn more?
Ottawa's delay is part of a much bigger argument over how quickly data centers should expand — and who gets to set the ground rules. These articles trace how Illinois' stalled response and similar fights in other communities are shaping that debate.
• Across Illinois, towns saw their legal options run out after lawmakers stalled the POWER Act.
• From Utah to Georgia, communities demand moratoriums as data center backlash reaches national politics.
• In Missouri, residents applauded as one county approved a 6-month moratorium on new data centers.
• In Lawrence, Kansas, officials weigh a 1-year ban amid fears over water, power, and noise.
• Across Indiana, nearly a third of counties now curb data centers as regional resistance grows.
That broader patchwork of local fights helps explain why Ottawa officials are waiting before locking in permanent rules. What Illinois does next could shape how much control communities keep over costs, water use, and grid strain.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
