‘Data center capital' of the Midwest expands as Pritzker calls for regulations
Illinois Gov. JB Pritzker is advocating for new state regulations to curb data center expansion, including a requirement for facilities to generate as much electricity as they consume. This comes as Elk Grove Village, a Chicago suburb, continues to expand its data center presence, with 20 operating and five more under construction. Environmental and consumer advocates, like the Citizens Utility Board, express concerns over data centers' high power and water usage, citing strain on the electric grid and potential increases in utility bills statewide.
Illinois Governor JB Pritzker is urging state lawmakers to enact new regulations targeting data center expansion during the upcoming fall veto session. The proposed legislation would mandate that data centers generate electricity equivalent to their consumption from the grid, a measure aimed at protecting consumers and residents.
This statewide push for regulation contrasts with the ongoing development in Elk Grove Village, a Chicago suburb that proudly identifies as the "data center capital" of the Midwest. According to Mayor Craig Johnson, the village currently hosts 20 data centers, with an additional five under construction, all strategically located within business and industrial parks away from residential areas. Johnson highlights the substantial revenue generated by these facilities, which amounted to $26 million last year, sometimes enabling the village to issue tax rebates to residents.
Despite the economic benefits, environmental and consumer advocacy groups, including the Citizens Utility Board (CUB), voiced concerns regarding the significant power and water demands of data centers. Sarah Moskowitz of CUB stated that the addition of these large facilities to the electric system is demonstrably increasing costs for all consumers. While Mayor Johnson acknowledged higher utility bills, he questioned whether data centers are solely to blame, noting that Elk Grove Village residents pay the same rates as neighboring suburbs. He also emphasized that most data centers in his community utilize closed-loop water systems, minimizing their impact on the local water supply.
Residents have also expressed their concerns at a village board meeting in May, though Mayor Johnson indicated he managed to address some of their worries. Governor Pritzker's regulatory proposal reflects a broader concern about the statewide impact of data center growth, particularly as larger, multi-gigawatt campuses are planned for other Illinois cities like Joliet and Yorkville. Johnson expressed conditional support for the governor's initiative, provided it genuinely reduces utility rates and does not deter data centers from choosing Illinois for their operations.