Illinois Data Center Regulation Bill Delayed Until Fall Session
A comprehensive data center regulation bill, the POWER Act, will not meet its May 31 deadline in the Illinois General Assembly. The bill aims to impose guardrails on water use, energy sourcing from renewables, and community benefits agreements for data center projects. Advocates are pushing for continued negotiations and a proposed pause on data center tax credits.
The POWER Act, a significant data center regulation bill in Illinois, will not advance by the General Assembly's May 31 deadline, though conversations are ongoing. Sponsored by Rep. Carol Ammons, D-Urbana, the bill proposes several guardrails for data center projects, including requirements for water use reporting, community benefits agreements, and sourcing energy from renewable sources. The delay means pending projects will not be immediately subject to these proposed regulations.
Advocacy groups like the Illinois Clean Jobs Coalition are urging lawmakers to act quickly, highlighting community demands to address the impact of data centers on utility bills and water resources. House Majority Leader Robyn Gabel, D-Evanston, and other lawmakers are calling for a pause in data center tax credits, a measure proposed by Gov. JB Pritzker in February, arguing it's fiscally irresponsible to offer incentives to profitable corporations that strain the grid and climate.
Sen. Ram Villivalam, D-Chicago, who is leading the Senate version of the bill, emphasized the POWER Act's comprehensive nature, calling it the 'most comprehensive data center legislation in the nation.' Despite bipartisan support for continued negotiations, the bill's complexity and the need for more stakeholder input have pushed its consideration to potentially the fall veto session. Communities across Illinois are seeking statewide standards and accountability for data center development.