Bills for AI, data centers, energy and gaming are circling the drain in Springfield

Bills addressing artificial intelligence, data centers, energy, and gaming are currently stalled in the Illinois Capitol with the legislative session nearing its May 31 adjournment. Governor JB Pritzker had previously called for a two-year moratorium on state tax breaks for data centers during his State of the State Address in February.

However, this proposal has encountered significant opposition from trade unions, who fear it could lead to non-union data center construction jobs within Illinois or incentivize development in other states lacking labor protections and offering robust tax incentives. Additionally, data center regulatory efforts generally have stalled in the face of resistance from local government leaders, who are keen to secure the substantial property taxes from data centers without the need to expand local services like schools, given the minimal on-site employees at completed facilities.

While a narrow bill focusing on transparency issues might still emerge, broader regulatory attempts are struggling. The article notes a comparison to Florida, where Republican Gov. Ron DeSantis recently signed a significant data center regulation bill. Critics in Illinois, including one lobbyist, have pointed to the governor's perceived lack of engagement as a hindrance to progress. Other legislative efforts, such as the governor's housing proposal, which faces opposition from local mayors over constraints on zoning powers, are also stalled, suggesting a session with limited major legislative movement.