Illinois lawmakers debate data center regulations in response to growing energy and water use concerns

Illinois lawmakers are actively considering several proposals to regulate the state's rapidly growing data center industry, addressing mounting concerns over its impact on the electrical grid, utility costs, and critical water resources. State Rep. Carol Ammons (D-Urbana) introduced the POWER Act, legislation that would mandate data center developers cover the costs of their own renewable energy generation and necessary grid upgrades. Ammons highlights that proposed data centers would require a combined 44 gigawatts of electricity, urging that Illinois residents should not bear these financial burdens. Her bill also seeks to increase transparency in water usage and enforce water-efficiency standards through permits. Another legislative effort comes from Republican State Sen. Chapin Rose (R-Mahomet), who has put forth a package of bills to protect consumers from rising energy costs and safeguard water resources, specifically the Mahomet Aquifer. Rose advocates for data centers to secure their own power sources and has called for a permanent moratorium on facilities using water from the Mahomet Aquifer, which serves nearly one million central Illinois residents. This contrasts with a one-year moratorium discussed by local officials, which Rose believes is insufficient to study long-term impacts. The data center industry, represented by Brad Tietz of the Data Center Coalition, argues that facilities already contribute to infrastructure costs, which can ultimately benefit other ratepayers by absorbing fixed expenses. However, researchers like Ayse Coskun of Boston University and Shaolei Ren of the University of California-Riverside emphasize the unique challenges posed by AI-focused data centers' concentrated and continuous energy demands and communities' lack of infrastructure to handle peak water demands. While a statewide debate unfolds, local governments are taking action. The Champaign County Board recently approved a one-year moratorium on large-scale data centers to develop new zoning and permitting standards, especially concerning energy use and the Mahomet Aquifer. Conversely, the Sangamon County Board approved a $500 million data center project. Furthermore, Governor JB Pritzker has indicated a shift in state policy, proposing a two-year pause on new data center tax credits, citing the need to prioritize affordability and stability for Illinois households amidst rising energy demand. Lawmakers are expected to continue debating these proposals until the end of the spring legislative session.