Reporting by Nikoel Hytrek and UIS Public Affairs Reporting (PAR) for Capitol News Illinois:
Lawmakers have a busy summer of negotiations ahead of them with pressure from both the governor’s office and their constituents to craft data center regulations that stakeholders and legislators can live with.
The pressure comes after lawmakers failed to pass any regulations during the spring session, despite widespread concerns from Illinois communities about data centers’ impact on energy demand, water, and quality of life. Lawmakers say the issue is complex, and like with other energy-related bills, they needed more information and time to decide how to structure guardrails.
Early in June, Gov. JB Pritzker took executive action to pause tax benefits for data centers and called on the General Assembly to pass regulations that resemble those in the POWER Act, a bill that was discussed in committee meetings but was never voted on.
Advocates earlier had lamented Pritzker’s “lack of engagement” in legislative negotiations despite his clear record of calling for added regulations.
From 2020-2024, the state pledged about $983 million in lifetime tax benefits to 27 data centers, according to a state report.