Illinois bill pushes data center accountability
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A new state proposal would require large data centers to bring their own renewable energy and disclose how much water and electricity they use.
Why it matters: Illinois energy prices have spiked in recent years, partly due to the enormous power demands of rapidly expanding data centers housing servers and other IT infrastructure.
- A recent state report warns that Illinois could face a power shortage by 2029.
By the numbers: Illinois hosts at least 222 data centers, with more than a hundred planned or under construction.
- In 2023, data centers consumed 4.4% of the nation's energy, a number expected to jump to 12% by 2028, according to the Department of Energy.
Zoom in: The bill, called the POWER Act, would push new large "hyperscale" data centers to:
- Bring their renewable energy sources to the state
- Report and pay for their water usage, provide efficient cooling systems, follow drinking water protection plans, limit diesel pollution, submit impact assessments before siting, eschew NDAs with local governments, create binding Community Benefits Agreements and a public benefit fund to support energy bill assistance.
What they're saying: Passage of the bill would show "the rest of the country that advancements in technology don't have to come at the expense of consumers, our resources, or environmental justice," House sponsor Rep. Robyn Gabel said in a statement.
The other side: "It's a 638-page bill that would regulate the data center industry like no other industry," Brad Tietz of the Data Center Coalition tells Axios.
- "So obviously, there are some things we can work on…but others that are very problematic."
- Tietz says the "problematic" issues include the "bring our own energy" provision, water reporting requirements and how "capacity charges" are calculated based on speculation about future data centers.
Pritzker perspective: While Gov. JB Pritzker has remained largely mum on the POWER Act, he signed a bipartisan letter on Thursday endorsing similar provisions.
- In the letter, seven governors urge PJM — the multi-state grid operator that serves Northern Illinois — to require data centers to "pay their fair share and [take] every step possible to protect working families" through a series of requirements detailed here.
The intrigue: Pritzker made headlines in February by proposing a two-year freeze on data center tax incentives, but the move never went anywhere. It needs General Assembly approval and no such proposal is currently on the table in Springfield.
What's next: After days of subject matter hearings on POWER Act topics, both sides say they hope to start "focused negotiations" this month.