How data centers are regulated in each of the tri-states
Data center regulation varies across Illinois, Missouri, and Iowa, with each state taking different approaches to incentives and local control. While Missouri and Iowa offer tax exemptions, Illinois has halted theirs, raising concerns about economic impact. Jefferson County, Iowa, is proposing a moratorium on data center development to allow for more study and local control over the long-term effects.
The tri-states of Illinois, Missouri, and Iowa are implementing varied approaches to data center development and regulation. Missouri State Representative Louis Riggs emphasizes the economic benefits of data centers, particularly in rural areas like Marion and Ralls Counties, Missouri, where the Mississippi River offers ample water for cooling and potential hydropower. He advocates for local government control over these decisions.
Conversely, Illinois State Senator Jill Tracy expresses caution, noting that Illinois recently halted its data center tax incentives, which she believes could lead to job and tax base losses if developers move to neighboring states. She encourages local officials to establish timely zoning laws for data centers. In Iowa, Jefferson County official Lee Dimmitt is pushing for a county-wide moratorium on data center construction. Dimmitt highlights concerns that state legislation capping budget increases at 2% limits the property tax benefits for counties, making it difficult for communities to responsibly manage the long-term impacts of such large-scale developments. He stresses the need for careful consideration to avoid short-sighted decisions.
The Illinois POWER Act, which aimed to regulate data centers and lower utility bills, did not advance in the recent legislative session, though Senator Tracy is unsure if it will be revisited. Both Riggs and Tracy agree that local governments and communities should have the primary say in whether data centers are built, acknowledging the challenges without specific local zoning laws. The article underlines the ongoing debate about balancing economic growth with local environmental, infrastructural, and regulatory concerns.