Ongoing Data Centers Debate Impacts City and State Legislation
Illinois is debating the proposed POWER Act, state-level legislation aiming to increase regulations and transparency for data centers, particularly regarding sustainable energy sourcing and environmental impact. Concurrently, Chicago's Mayor Brandon Johnson has signed an executive order increasing regulations on air pollution and noise for data centers, and has called for a 12-month moratorium on new data center development. The Chicago City Council is also considering an amendment to mandate data centers report water and electricity usage.
Illinois lawmakers and advocates are pushing for the passage of the Protecting Our Water, Energy and Ratepayers Act (POWER Act), a bill introduced in the Illinois House of Representatives on February 6. This legislation seeks to introduce greater regulations for data centers and enhance transparency regarding their potential environmental impacts. A key provision, Bring Your Own New Clean Capacity and Energy (BYONCCE), would require data centers to secure their own sustainable energy sources, rather than solely relying on the existing energy grid. The bill did not pass before the May 31 General Assembly deadline, but proponents, including Majority Leader Robyn Gabel and advocate Hannah Flath of the Illinois Coalition of Clean Jobs, remain optimistic for its consideration during the fall veto sessions.
In Chicago, Mayor Brandon Johnson took decisive action on August 11 by signing an executive order to increase regulations on air pollution and institute noise control measures for data centers. The order also establishes an Interdepartmental Data Center Environment and Community Protection Task Force. Concurrently, Mayor Johnson called on the City Council to implement a temporary 12-month moratorium on new data center development to allow for the passage of new regulations. Additionally, the City Council Committee on Environment has amended a municipal code to mandate data centers report their water and electricity usage, with the proposed amendment slated for a full City Council vote on September 23.
These legislative efforts stem from growing concerns across Illinois communities regarding the environmental and economic effects of data centers, including noise and air pollution from backup generators, increased energy costs, and high water consumption. Experts like Aaron Durnbaugh, Loyola Director of Sustainability, and Jarred Patton, Project Manager for the Chicago Department of Environment, emphasize that current regulations are insufficient for the expanding data center industry. Patton's insights are informed by an 18-month research period by the City of Chicago Sustainable Data Centers Working Group, which identified issues with the city's 39 data centers.