Sterling Plan Commission starts BESS, data center ordinance work
The city of Sterling, Illinois, has enacted a 180-day moratorium on applications for data centers and battery energy storage systems while its Plan Commission works to develop specific ordinances. This proactive step aims to establish regulations for these facilities, as state law prevents the city from implementing an outright ban on lawful businesses. State-level discussions also include the proposed POWER Act, which would impose infrastructure cost, clean energy, and water use requirements on data centers.
The Sterling Plan Commission has begun drafting ordinances for data centers and battery energy storage systems (BESS), following the Sterling City Council's unanimous vote on September 7 to impose a 180-day moratorium on processing applications for these facilities. City Attorney Tim Zollinger explained to the commission that while the city cannot outright ban data centers or BESS under Illinois state law, it can develop comprehensive zoning and regulatory codes. The city has received inquiries from BESS companies but not yet from data center developers.
The need for specific ordinances is critical for the city, as a non-home-rule municipality, to regulate what constitutes a lawful business in Illinois. Zollinger referenced past court decisions from the 1970s and 1980s that affirmed the right of lawful businesses to operate, limiting municipalities to zoning and regulation rather than outright bans. He emphasized that the goal is to establish a balance, setting clear rules such as setbacks, fire ratings, suppression systems, and noise levels that companies must adhere to if they wish to locate in Sterling. The moratorium can be extended, but not indefinitely, to avoid potential lawsuits from developers.
In related state news, Gov. J.B. Pritzker acknowledged that he lacks the authority to impose a statewide moratorium on data centers without legislative action. He expressed hope that the state legislature would consider the POWER (Protecting Our Water, Energy and Ratepayers) Act during its veto session. This proposed bill, Senate Bill 4016 and House Bill 5513, would require data centers to cover their own infrastructure connection costs, use clean energy, and adhere to water use guidelines. Pritzker previously ordered a halt to tax incentives for data centers, effective July 1, 2026. Without further state intervention, local communities like Sterling will continue to address data center development through local ordinances and zoning codes.