Illinois Considers Legislation to Regulate Data Center Energy and Water Use
Illinois is considering the POWER Act (SB4016/HB5513) to regulate energy and water use for hyperscale data centers, mandating transparency and community benefits. The proposed legislation, introduced in February, missed a key General Assembly deadline. This comes as 123 new data centers are planned for the state, raising concerns about environmental and social impacts.
Illinois is facing a significant increase in data center development, with 123 new facilities planned, nearly doubling the current total. In response to concerns about the environmental and social impacts of these power and water-intensive operations, the Protecting Our Water, Energy, and Ratepayers Act (POWER Act, SB4016/HB5513) was introduced.
The POWER Act, sponsored by State Sen. Ram Villivalam and State Rep. Robyn Gabel, aims to implement "guardrails" such as water-use reporting, community benefit agreements, and a requirement for data centers to pay for their own renewable-sourced energy. Advocates, including Renee Ma from the LinkMind Foundation, argue these measures are crucial to mitigate issues like increased reliance on fossil fuels, air pollution, intensive water consumption, and noise/light pollution, which disproportionately affect communities of color and under-resourced populations.
Despite the urgency, the POWER Act missed the General Assembly's May 31 deadline. This occurred shortly before Gov. JB Pritzker suspended new tax incentives for data centers on June 5, following an estimated $983 million in lifetime tax breaks already awarded to 27 data centers. Advocates are now urging Springfield to act on the legislation in the fall session to establish necessary safeguards.