As state lawmakers stall on data center rules, Illinois cities and counties step in to fill the void
Illinois cities and counties are enacting their own data center regulations and moratoriums due to a lack of statewide rules. Aurora has implemented strict new standards following a moratorium, addressing concerns over noise, utility bills, and environmental impact. Numerous other localities, including Champaign County and McLean County, have also approved moratoriums or regulations to manage data center development amid public and environmental concerns.
Illinois cities and counties are stepping in to regulate data center development as state lawmakers delay action on statewide rules. Aurora, for example, concluded a 180-day moratorium by implementing new regulations, including restrictions on where facilities can be built, updated zoning rules for city approval, and strict noise, water, and energy efficiency standards for new data centers. Existing data centers in Aurora must also provide annual reports on their environmental metrics.
Aurora Mayor John Laesch emphasized the city's commitment to prioritizing residents and the environment, noting that other municipalities and counties are following suit. At least six counties and nine cities in Illinois have approved data center moratoriums or regulations, with Bloomington, Normal, Effingham, Bourbonnais, Carbondale, Logan County, and Lake County enacting bans ranging from six months to a year. McLean County has also mandated electrical consumption documentation for existing data centers and impact assessments for new proposals. These local actions are largely driven by concerns over energy and water use amid rising utility costs, with data centers projected to significantly increase Illinois' electrical consumption.
Advocacy groups like the Coalition for Springfield’s Utility Future and the Sierra Club, represented by Lori McKiernan, highlight public frustration over a lack of transparency and a perception that promised economic benefits do not outweigh negative impacts. While Brad Tietz, director of state policy for the Data Center Coalition, acknowledged the industry's need for better community engagement, he also argued that data centers provide substantial tax revenue and jobs, and that inflation is a larger factor in rising utility costs than data center consumption.
Champaign County, led by Board Vice Chair Emily Rodriguez, enacted its own one-year moratorium and is exploring regulations similar to Aurora's. However, local officials recognize the limitations of county-level actions, which only apply to unincorporated land. They are urging state lawmakers to pass comprehensive regulations like the stalled POWER Act, which aimed to establish strong water and energy use standards. Governor JB Pritzker has temporarily paused applications for the state’s data center tax credit program, but this does not prevent new development or impose regulations. The issue may be revisited during the November veto session.