The ordinance amends Chapter 2-68 of the Municipal Code of Chicago by introducing a new section, 2-68-050, which establishes data residency requirements for City data. It defines "City data" and mandates that any contract for the storage of such data must ensure that it is processed, stored, and disposed of within the jurisdiction of the United States, unless authorized otherwise by the Chief Information Officer. Additionally, the ordinance introduces a system of "earned credits" for vendors who meet specific data residency commitments, allowing them to receive bid preferences on future contracts based on their compliance.

Furthermore, the ordinance mandates the formation of an interdepartmental working group led by the Chief Sustainability Officer to assess the environmental and energy impacts of data centers in Chicago. This group will include representatives from various city departments and is required to present its findings by December 31, 2025. The ordinance will take effect on January 1, 2025, and includes provisions for the Chief Information Officer and Chief Procurement Officer to adopt rules for its administration and enforcement.