Illinois lawmakers weigh data center benefits and costs

The Illinois General Assembly is currently debating the impact of burgeoning data center development, fueled by the artificial intelligence industry, as communities raise concerns about energy consumption, noise, and environmental effects. Proponents highlight potential property tax revenues, economic development, and job creation, citing examples such as the CyrusOne project in Sangamon County, projected to bring $500 million in investments and millions in annual property taxes. Similarly, a planned 795-acre data center in Joliet is expected to generate significant property and utility taxes over 30 years. DeKalb Mayor Cohen Barnes lauded Meta's data center for its substantial community investments, utility taxes, and property tax contributions, enabling projects like a new school. However, critics, including Aurora Mayor John Laesch, acknowledge tax benefits but argue they don't outweigh downsides like constant noise pollution and strain on the power grid. The Data Center Coalition emphasizes the industry's economic contributions, including job growth and significant GDP contribution to Illinois. In response to these concerns, Aurora recently enacted ordinances requiring data center developers to conduct studies on noise, water, and energy use, and to meet standards including renewable energy sourcing. State lawmakers are currently considering the POWER Act, a major bill that would mandate data centers pay for their energy infrastructure, provide transparency on water use, obtain IEPA permits for wastewater, and implement community benefit agreements. The passage of this statewide legislation remains uncertain.