A new bill, introduced to the Illinois General Assembly last week, could regulate data centers’ impacts on water, energy and overburdened communities.
The POWER Act requires new data centers to bring and pay for their own renewable energy, contribute to funds for utility assistance and enforce transparency.
Democratic state senator Ram Villivalam sponsored the bill. He represents the 8th district, which includes part of Kane County. He said the POWER Act creates common sense guardrails that minimize a data center’s impact on nearby communities.
“This is not too much to ask,” he said. “By establishing policies that ensure data centers — not consumers — bear the increasing energy costs and critical protections for our environment and sustainable water use, we can work towards a future built for technology to support our daily lives, not deplete our resources and price out us out of our homes.”
Under the act, data centers that meaningfully contribute renewable energy and storage will also be connected to the grid faster than their competitors.
The bill would also require companies to take measures towards transparency and work directly with local residents for their projects.
Lucy Contreras is the Illinois state program director of GreenLatinos, a national nonprofit advocacy organization. She said data centers have a responsibility to the communities they’re looking to build in.
“Big tech corporations cannot be allowed to cash in on the AI boom while leaving Illinois communities to pay the price,” she said. “We need more than just basic protections. We need real benefits for host communities and full transparency at every step of the development process.”
She said the POWER Act will accomplish this goal. The bill would limit the ability of data centers to build within 3 miles of overburdened communities unless an impact assessment shows the development won’t cause health or environmental risks to them.
“We cannot afford to be complacent now,” she said. “As new industries emerge, we must continue strengthening regulations. Major industries repeatedly target vulnerable communities like mine for large developments and data centers are no exception.”
The bill would create a fund, paid for by data center developers, so that local communities have the resources to hold data centers accountable.
A relevant committee will review the bill while advocates work to garner more support for it. Many legislators are focused on the midterm elections this March, so momentum may be delayed until later this spring.
