Illinois lawmakers look to regulate data centers as local governments propose their own rules

Several local governments in Central Illinois are looking to create their own data center regulations as Illinois lawmakers have yet to take action regulating this emerging industry. Data centers are seen as key to fueling an AI revolution, but critics worry they could drain water and electricity supplies that are needed to power them. Illinois lawmakers have introduced the Power Act, which would require data centers to pay for their own energy costs, report water usage, and work with communities to reduce pollution. Gov. JB Pritzker has also proposed pausing a two-year tax credit for data centers. With no guidelines from the state, local governments have started to propose zoning and environmental regulations for data centers on farmland as they wait to see what regulations Springfield might pass. One community, Pekin in Tazewell County, has already rejected a proposed data center project due to community opposition. State Sen. Chris Balkema believes local governments should have zoning control over data centers, while Rep. Sharon Chung wants the state to set guidelines to protect resources and vulnerable communities, while still leaving the decision on where to build up to local governments.