Data center regulations weighed; some worry over jobs, energy, taxes

Major legislation, House Bill 5513, currently under consideration in the Illinois state Senate and House, proposes significant new regulations for data centers across the state. The 632-page bill would mandate expanded permits, require data centers to report energy usage, contribute to community funds, plan for water conservation, and bring new energy capacity to the grid, according to Rep. Carol Ammons (D-Urbana). Supporters of the bill, including Andrew Rehn and Tyshianna Bankhead from the Illinois Clean Jobs Coalition and Brian McDaniel from the Citizens Utility Board, emphasize the need for protections against large water users and argue the bill would force new data center projects to integrate renewable energy, thus expanding grid capacity. Rep. Blaine Wilhour (R-Louisville) raised concerns about data center power usage contributing to rate hikes, linking it to previous energy legislation. However, opposition comes from various fronts. Brad Tietz of the Data Center Coalition argues the bill is overly restrictive, discouraging new projects in Illinois and potentially pushing jobs to neighboring states, despite data centers' contributions to the state's tax base. Joe Duffy from Climate Jobs Illinois opposes the bill because he believes it doesn't sufficiently regulate how new energy projects will be built, potentially allowing developers to meet clean energy obligations out-of-state while still receiving Illinois incentives. Lawmakers are in the final weeks of the legislative session, weighing these diverse arguments.