Illinois grapples with data center boom, environmental and energy impacts

Illinois is experiencing a rapid increase in proposed data center developments, leading to significant bipartisan backlash and legislative efforts aimed at addressing their environmental and economic impacts across the state. Town halls from Pekin to Joliet and Chicago's southeast side have seen packed rooms as residents discuss concerns regarding air and water quality, as well as rising energy bills. Experts like Sarah Moskowitz, executive director of the Citizens Utility Board, emphasize the distinction between traditional data centers and next-generation hyperscale facilities, particularly those processing artificial intelligence, which demand unprecedented levels of energy and water. Helena Volzer, senior source water policy manager at the Alliance for the Great Lakes, notes the imprecision of "hyperscale" but highlights the massive scale of these facilities. A Goldman Sachs report projects a 165 percent increase in data center power consumption by 2030 due to AI. Yury Dvorkin, an engineering professor at Johns Hopkins University, explains that concentrating high electricity demand in specific locations strains the grid, necessitating new generators and transmission lines that cannot be built quickly enough, potentially leading to price spikes for consumers. He also noted that while the Inflation Reduction Act aimed to improve grid planning, subsequent political actions have made planning more "haphazard." Moskowitz points out that Illinois utility customers, specifically ComEd customers, may pay for potential infrastructure upgrades planned by PJM, the regional grid operator, even if proposed data centers are never built. The Midwest is targeted for data centers due to its abundant fresh water and cool climate, but Volzer cautions that local water systems remain vulnerable. An Alliance of the Great Lakes report indicated hyperscale data centers could use 150 billion gallons of water across the U.S. in five years. Environmental advocates, including Hannah Flath from the Illinois Environmental Council, fear that increased energy demand from data centers could prolong reliance on fossil fuels, making it harder for Illinois to achieve its clean energy goals. The issue of data center costs is seen as particularly pressing amidst broader economic pressures on Illinois residents, linking affordability to the technical aspects of data center operations.