Illinois Fails to Pass Landmark Act Requiring ‘Responsible’ Data Center Energy and Water Use
The Illinois General Assembly failed to pass the POWER Act, a landmark bill that would have mandated public disclosure of water usage and adherence to strict energy and environmental standards for data centers. This legislative inaction, despite a UN report warning of AI's impact on grids and water, leaves key regulations unaddressed. Environmental advocates express deep frustration, citing the growing threat to the electric grid, water resources, and environment.
The Illinois General Assembly concluded its legislative session without passing the landmark POWER Act, a bill intended to impose significant energy and water regulations on data centers within the state. The proposed legislation would have required data centers to disclose their water usage quarterly to the Illinois State Water Survey, source new clean energy, and meet specific environmental standards, including a 200-foot setback from potable water supplies and residences.
Environmental groups and legal experts, including Kari Ross of the Natural Resources Defense Council and Jen Walling, CEO of the Illinois Environment Council, voiced profound disappointment. Ross criticized the General Assembly for not advancing the bill while simultaneously approving millions in taxpayer incentives for data centers, contrary to the Governor's stated vision. Walling highlighted concerns that the failure allows unchecked data center growth, posing threats to the state's electric grid, water resources, land, and communities.
The legislative setback comes as Illinois faces a surge in data center development, with 115 operating facilities and 67 new campuses planned, including hyperscale projects in Grayslake, Joliet, and Yorkville that alone could consume 80 percent of the state's current residential electricity. Experts project data centers could account for 37 percent of Illinois' total energy needs by 2040, largely met by fossil fuel and nuclear power. The bill's failure also coincides with a United Nations University report warning of the global energy and water strain from generative AI training, further underscoring the environmental implications of data center expansion.