Illinois Is “Not Quite Ready” to Pass Data Center Regulations Despite Public Pressure
The Illinois General Assembly's 2026 session concluded without passing the POWER Act, a bill proposing regulations on data centers. Following this, Governor JB Pritzker paused new data center tax incentives and directed the legislature to revisit the issue during its veto session later this year. Proponents of the bill, citing urgent concerns over water and energy resources, are pushing for its passage.
The Illinois General Assembly concluded its 2026 legislative session without advancing the POWER Act, a bill designed to regulate data centers. In response to the delay, Illinois Governor JB Pritzker announced a halt to the processing of new data center tax incentives on June 5, 2026. Governor Pritzker has instructed the General Assembly to reconsider data center regulations during its upcoming veto session, aiming for a comprehensive framework that protects affordability, natural resources, and ensures responsible growth across Illinois.
The POWER Act, introduced by Illinois House of Representatives Leader Robyn Gabel, seeks to impose new regulations on data centers, specifically addressing their water usage, operational efficiency, and transparency. The bill also proposes requirements for data centers to bring their own clean energy to the grid and absorb infrastructure costs, preventing these expenses from being passed on to consumers. Despite multiple hearings in both the House and Senate, Representative Gabel noted that the sentiment was that lawmakers "weren't quite ready" to pass the bill, a common hurdle for significant new legislation.
Representative Gabel remains optimistic, planning further stakeholder meetings this summer to refine the bill's language for the November veto session, possibly by attaching it as an amendment to another bill. Andrew Rehn, director of climate policy at Prairie Rivers Network, expressed disappointment over the legislative outcome, emphasizing the POWER Act's widespread public support. Rehn highlighted the urgency of passing the bill, warning that data center projects approved before its potential enactment would proceed without crucial environmental and transparency safeguards. He referenced a January analysis from the University of Virginia's Weldon Cooper Center for Public Service, which identified 115 operational and 67 proposed data centers in Illinois.
The situation in Illinois reflects a broader national trend, with over 30 states proposing data center legislation in 2026, and at least 14 considering temporary bans. Examples include Maine's vetoed moratorium and New York's recently passed one-year moratorium. Jackson Morris, director of state power sector policy at the Natural Resources Defense Council, noted the increasing pressure on elected officials nationwide to address the impacts of data center development, indicating it is almost a political necessity to demonstrate action.