Illinois regulates AI safety but not data centers

Reporting by Monica Eng for Axios Chicago:

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.”