Illinois Lawmakers Advance New Regulations for Data Centers
With the rise in data centers, states like Illinois are considering regulations to control the booming artificial intelligence sector. Data centers underpin the technological revolution, but critics worry they drain vital resources like water and electricity. Illinois lawmakers are drafting legislation to address these concerns.
The Illinois Data Center Energy and Water Reporting Act requires all data centers operating in Illinois to annually report energy and water use to the Illinois Power Agency. Reports must show monthly usage and detail efficiency measures to curb consumption. Noncompliance can incur fines of up to $10,000 per violation.
In addition to current rules, Illinois state representatives have introduced the POWER Act. This proposal goes beyond reporting and establishes comprehensive water and energy regulations. Data centers would pay for their energy and report water usage. It also requires that energy come from renewable sources and prohibits data centers from shifting economic burdens onto nearby residents. The Union of Concerned Scientists found that without the POWER Act, data centers could raise electricity costs by $37 billion by 2050. Data center’s demand for power could lead to natural gas and coal power plants staying online without renewable energy investments, a key shift the POWER Act aims to avoid. With limited utility consumption laws, local officials have begun proposing zoning and environmental rules for data centers.
Logan County is negotiating with data center companies to build locally. In response, county leaders proposed an ordinance to regulate pollution from these facilities. One board member suggested local governments manage zoning while the state focuses on environmental rules. Board members want the economic benefits of hosting data centers, warning that if they are built elsewhere, Logan County may see higher energy costs without the benefits.
As of May, the POWER Act is pending in the Illinois General Assembly. While not passed yet, this bill reflects growing concern over the environmental impact of data center construction and operation. The POWER Act aims to protect Illinois residents, safeguard water resources, and ensure that large new energy users do not undermine the state’s clean energy and environmental justice goals. With these targeted policy alterations, Illinois hopes to attract projects that both support economic development while protecting communities and the environment.
For more information related to the POWER Act or data center regulations, please contact the qualified attorneys at Rock Fusco & Connelly, LLC.