Illinois lawmakers debate data center regulations in response to growing energy and water use concerns

Illinois lawmakers in Springfield are actively debating multiple legislative proposals aimed at regulating the state's burgeoning data center industry, spurred by mounting concerns over its impact on the electrical grid, utility costs, and precious water resources. State Rep. Carol Ammons, D-Urbana, highlighted that utility companies Commonwealth Edison and Ameren have received proposals for new data centers requiring a combined 44 gigawatts of electricity, urging that Illinois residents should not financially bear the burden of the industry's rapid expansion. Ammons introduced the POWER Act, legislation that would mandate data center developers pay for their own renewable energy generation and grid upgrades, as well as require public disclosure of water usage and adherence to water-efficiency standards. Separately, State Sen. Chapin Rose, R-Mahomet, proposed a package of bills to address energy costs and protect water resources, particularly the Mahomet Aquifer, which supplies drinking water to nearly 1 million central Illinois residents. Rose advocated for a permanent moratorium on data centers drawing water from this aquifer, contrasting it with a one-year pause being discussed by other officials. The Data Center Coalition's director of state policy, Brad Tietz, countered that the industry is committed to covering its full cost of service and can help absorb infrastructure costs, potentially leading to stable or reduced rates for other customers. Academic experts weighed in, with Boston University professor Ayse Coskun noting the unusually concentrated electricity demand of AI-focused data centers, while University of California-Riverside associate professor Shaolei Ren pointed out the strain on local water infrastructure from the industry's peak water demands. Local governments are taking varied approaches; the Champaign County Board enacted a one-year moratorium on large-scale data centers to develop zoning and permitting standards, including energy and water use regulations. Conversely, the Sangamon County Board recently approved a $500 million data center project. Furthermore, Governor JB Pritzker has indicated a shift in state policy, proposing a two-year pause on new data center tax credits to prioritize affordability and stability for Illinois households amidst changing energy landscapes.