Political will grows for data center regulations as POWER Act remains in
committee
[March 19, 2026]
By Nikoel Hytrek and UIS Public Affairs Reporting (PAR)
SPRINGFIELD — Managing data centers has been a growing issue around the
U.S. as states balance economic development with community concerns
about pollution, water supply and energy prices.
That has led to different regulations nationwide from moratoriums on
development permits to putting data centers in their own ratepayer
class. Illinois legislators have proposed regulating data centers with
the POWER Act, a bill that addresses concerns about prices, water and
pollution by:
Requiring data centers to pay for their own energy and the
infrastructure to generate it, and requiring that energy to come from
renewable sources.
Mandating transparency from data centers about their water use and water
permits from the Illinois Environmental Protection Agency, which would
manage how data centers handle wastewater and meet efficiency standards.
Requiring the IEPA to conduct assessments about how a data center would
impact a community and mandating data center developers enter community
benefits agreements that promote transparent engagement with the public.
The community benefits agreements will be enforced by a coalition of
residents, organizations and local government officials who will make up
a community advisory board.
Democratic lawmakers sponsoring the bill call the regulations
“commonsense” guardrails on a growing industry that impacts communities
and electricity prices.
Obviously, we know that data centers can provide economic development.
But on the other hand, I want to make sure that our environment is
protected and our people are protected,” said Illinois House Majority
Leader Robyn Gabel, D-Evanston.
While data center backers say the economic benefits include job
creation, capital investments and property tax revenue,
environmentalists and consumer advocates say they are far outweighed by
the risks for water resources and energy prices.
The POWER Act thus far remains in committee. But Illinois has a history
of passing large-scale energy packages, such as the Climate and
Equitable Jobs Act and the Clean and Reliable Grid Act, as extensive
amendments late in their regular or fall legislative session. The
session is slated to adjourn on May 31.
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Growing need for rules
Aurora is one Illinois city already regulating data centers. The
city in September implemented a 180-day moratorium on development
that will expire in late March.
"Obviously, we know that data centers can provide economic
development. But on the other hand, I want to make sure that our
environment is protected and our people are protected,” said
Illinois House Majority Leader Robyn Gabel, D-Evanston.
While data center backers say the economic benefits include job
creation, capital investments and property tax revenue,
environmentalists and consumer advocates say they are far outweighed
by the risks for water resources and energy prices.
The POWER Act thus far remains in committee. But Illinois has a
history of passing large-scale energy packages, such as the Climate
and Equitable Jobs Act and the Clean and Reliable Grid Act, as
extensive amendments late in their regular or fall legislative
session. The session is slated to adjourn on May 31.
Growing need for rules
Aurora is one Illinois city already regulating data centers. The
city in September implemented a 180-day moratorium on development
that will expire in late March.
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