Advocates, accusing governor of ‘lack of engagement,’ urge passage of data center regulations by end of May

Environmental advocates are urging Illinois lawmakers to pass the POWER Act, a comprehensive bill designed to regulate data centers' water and energy consumption, before the current legislative session ends. Advocacy groups, including the Illinois Environmental Council and the Illinois Clean Jobs Coalition, have expressed confusion and concern regarding Governor JB Pritzker's perceived "lack of engagement" on data center issues, despite his earlier calls for grid operators like PJM Interconnection to require data centers to provide their own energy and a proposed two-year pause on state tax credits. The push for the POWER Act stems from a rapid increase in data center development across Illinois, with nearly 100 large-load projects in the queue for northern Illinois' ComEd territory. Recent data center approvals in Sangamon County, Joliet, and Yorkville, often amidst community opposition, underscore the need for a statewide regulatory framework. Jen Walling, executive director of the Illinois Environmental Council, emphasized that data center impacts are a statewide issue requiring a unified solution. Key provisions of the POWER Act include prohibiting nondisclosure agreements between government bodies and data centers, mandating community benefits agreements, requiring public water-use reports and environmental impact assessments, and compelling developers to build their own renewable energy generation facilities. This legislation aims to address concerns about the millions of gallons of water data centers can consume and the strain they place on the electric grid, particularly the Mahomet Aquifer. Republican Representative Jed Davis of Yorkville has also introduced House Bill 5755, which would require public notices and hearings for data center proposals and allow residents to trigger a referendum vote on projects. The Data Center Coalition, while acknowledging community impacts, seeks to negotiate changes to the POWER Act, advocating for voluntary rather than mandatory renewable energy and water reporting requirements. Climate Jobs Illinois supports the bill's objectives but seeks guarantees for union labor standards and opposes a pause on data center tax credits. Communities like Naperville and Pekin have successfully halted projects through public outcry, while others, such as Sangamon County and Joliet, saw projects approved despite resident concerns over a perceived lack of transparency and public input.