Data Centers Should Be Required To Disclose Water And Energy Use, City Panel Recommends
A Chicago city report recommends new regulations for data centers, including special permitting, zoning reviews, and disclosure of water and energy use, to mitigate environmental impacts. The report downplays the likelihood of hyperscale data centers in the city despite Related Digital's proposal for a one-gigawatt facility on the South Side. The working group also suggested exploring wastewater reuse for cooling and implementing community benefits agreements.
A recent report from a Chicago city working group on sustainable data centers recommends a new regulatory approach for the industry, which currently uses significant water and energy. The report suggests requiring data centers to disclose water and energy usage, advocating for dedicated permit programs and specialized zoning reviews instead of the current "by-right" classification as offices. Additionally, it proposes exploring the reuse of treated wastewater for cooling and implementing community benefits agreements, citing a precedent from Lancaster, Pennsylvania. John Murray, executive director of the Metropolitan Water Reclamation District, supported wastewater reuse as an environmental benefit despite potential infrastructure costs.
However, the report drew criticism for dismissing the likelihood of hyperscale data centers in the city due to land and infrastructure constraints. This contrasts sharply with Related Digital's March 2025 announcement of its intent to build a one-gigawatt hyperscale data center on the South Side, part of the Quantum Shore Chicago megadevelopment. Kathleen O’Shea from the Department of Environment stated the report's recommendations are intended to apply universally, not to specific projects.
While the Quantum Shore site's zoning generally permits data centers, city officials noted no specific building permit or business license applications are currently pending for a data center at the site from Related Digital. Developers for Quantum Shore have remained quiet about the hyperscale facility, asserting that the first phase of their project, the Illinois Quantum and Microelectronics Park, will not include a data center, but declining to clarify plans for future phases. The proposed POWER Act in the Illinois Assembly, which would mandate CBAs, did not pass this spring but could be reconsidered.