Potential regulation on Illinois data centers punted to the fall by lawmakers
Illinois lawmakers have delayed action on proposed regulations for data centers, pushing the debate to the fall legislative session. House Speaker Emanuel Chris Welch cited a lack of votes for proposals that would restrict data center water and energy usage and potentially mandate self-generated electricity. Meanwhile, the Governor's office may independently move to pause data center tax incentives.
Illinois lawmakers concluded their spring legislative session without advancing hotly debated proposals to regulate data centers, deferring action until the fall. House Speaker Emanuel Chris Welch stated that there were insufficient votes to pass new regulations, which included measures to restrict data center water and energy consumption, and potentially mandate that they generate their own electricity or offset grid usage.
Sarah Moskowitz of the Citizens Utility Board expressed disappointment, arguing that data centers strain wholesale power markets, contributing to rising Com Ed bills. Conversely, Brad Tietz, Midwest director of the Data Center Coalition, countered that data centers are not the primary cause of high energy costs, citing inflation and grid modernization needs, and noted their water usage is less than other developments. Environmental and consumer groups rallied in Springfield, advocating for at least a two-year pause on data center tax incentives, which have totaled nearly $1 billion over the last five years.
A source from the governor's office indicated that Governor Pritzker, who initially supported the tax breaks in 2019 but has since reconsidered, might announce executive action to pause these tax credits independently of the General Assembly as early as the end of the week.