Negotiations over data center legislation have yet to ramp up as environmental groups cite favorable poll

The Illinois Clean Jobs Coalition is pushing for the "Protecting Our Water, Energy, and Ratepayers Act" (POWER Act), which seeks to impose stricter regulations on data center operations in Illinois. State Representative Robyn Gabel of Evanston, a sponsor of the bill, emphasized the need for transparency in community benefit agreements between data centers and local governments, citing an instance where the mayor of DeKalb refused to disclose such a deal. Christine Nannicelli of the Sierra Club highlighted how secrecy prevents elected officials from making informed decisions on data center projects, as seen with a Sangamon County Board member unable to review an agreement. State Senator Ram Villivalam, also a sponsor, acknowledged the economic benefits of data centers but stressed the need to address their high electricity and water demands. The POWER Act proposes mandating water use disclosure, assessing cooling alternatives, and requiring high-efficiency systems, with oversight from the Illinois State Water Survey. Additionally, it would create an industry-funded public benefits fund. Governor JB Pritzker has also called for a two-year pause on new tax credits for data centers, citing their disproportionate impact on the energy grid, while State Senator Chapin Rose introduced a separate bill to ban data centers from using water from the Mahomet Aquifer and enhance IEPA oversight. Local entities are also grappling with data center development; Logan County is considering an ordinance to regulate pollution, and the Village of Pekin recently rejected a data center proposal. Conversely, industry groups like the Data Center Coalition, represented by Brad Tietz, argue that the POWER Act and the proposed tax credit pause would stifle investment and economic growth. Tietz emphasized the industry's significant contribution to Illinois's GDP and job creation, advocating for broader discussions on water management and cautioning against statewide mandates that might deter data center development. He also pointed out that data centers use less water than many other industries and that AI-related workloads are only a portion of data center activity. Despite committee hearings and ongoing stakeholder conversations, formal negotiations on the POWER Act have yet to begin in earnest. The industry seeks certainty in regulations, while environmental groups push for accountability and transparency to prevent working people from bearing the costs of data center operations.