Illinois regulates AI safety but not data centers
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Illinois lawmakers passed one of the nation's strictest AI safety policies last week, but the state still lags behind Florida and Tennessee when it comes to regulating the buildings that make AI use possible: data centers.
Why it matters: In the wake of massive data center expansion, Illinoisans are facing skyrocketing energy bills and a looming power shortage.
State of play: Legislation called the POWER Act, meant to demand more data center transparency and to address energy price hikes, tanked in Springfield.
- Gov. JB Pritzker's attempt to temporarily pause state tax incentives for new data centers also hit a roadblock, in part because of trade union opposition.
What they're saying: Failure to pass the bills is "setting Illinoisans up to see higher energy bills, increased air pollution and greater risks to our water resources," Illinois Environmental Council communications director Hannah Flath tells Axios.
- "Holding Big Tech companies accountable for responsible AI use is only one piece of the puzzle — these companies also need to be held accountable for their outsized impact on our communities, resources and pocketbooks."
The other side: "Illinois' Data Center Investment program has generated nearly $16 billion in investment in Illinois since its inception in 2019," Brad Tietz of the Data Center Coalition tells Axios.
- "Not only would pausing the program significantly curtail that type of investment moving forward, but it would also remove a critical labor protection for Illinois' skilled trades."
The big picture: Illinois hosts at least 222 data centers, and three more have been approved since the bill was introduced in February.
- "This is exactly what Big Tech wanted — for legislative leadership to kick the can down the road on enacting these critical guardrails so that they can get as many more data centers approved as possible," IEC CEO Jen Walling said in a statement.
Between the lines: AI super PACs are spending tens of millions in this year's elections to fund attack ads against candidates seen as unfriendly to their cause.
What's next: Some environmental advocates say they're looking ahead to the January veto session to revive data center regulation issues with a potentially more receptive Legislature.
- Meanwhile, Tietz, at the Data Center Coalition, says he wants to talk to Illinois officials this summer about ways to "modernize" the state's data center program with "clean energy and water reuse" rather than pausing it.