A new analysis from the Union of Concerned Scientists shows that data centers in Illinois could add up to $37 billion to the cost of electricity over the next 25 years.
The report shows that without policy change, data centers will increase the state’s demand for electricity from outside Illinois when historically, the state has been an exporter of electricity.
James Gignac, Midwest Policy Director with UCS, said Illinois is facing the consequences of a basic economic concept.
“We have fossil [fuel] plants that are leaving the power grid,” he said. “At the same time, we have new demand from data centers being presented. What that does is, it puts pressure on supply and demand and increases costs for customers. And in the last couple of years here in Illinois, we've seen price increases — price spikes — largely due to that imbalance of supply and demand throughout the regional grid operators.”
According to the report, data centers in Illinois could account for 72% of the growth in electricity demand by 2030. UCS’s analysis also shows data centers will increase pollution from coal and gas fired power plants, which will increase health costs and climate damage.
“Data centers are fundamentally changing the landscape as we look farther out into the future,” Gignac said. “Our analysis is a call to action to state policymakers that we need additional policies specific to data centers because of the effects of this large amount of new electricity demand.”
UCS recommends policies that require data centers to publicly report their electrical and water needs and secure their own carbon free energy.
These concerns may be addressed in this legislative session. Policymakers could vote on policies that would require data center developers to bring their own source of carbon free electricity to reduce the demand on Illinois’ grid.
