Several local governments in Central Illinois are looking to create their own data center regulations as Illinois lawmakers have yet to take action regulating this emerging industry.
Data centers are seen as key to fueling an AI revolution. Critics worry they could drain water and electricity supplies that are needed to power them.
Illinois lawmakers have introduced the Power Act, which would require data centers to pay for their own energy costs, report water usage and have companies work with communities to reduce data center's pollution.
Gov. JB Pritzker has proposed pausing a two-year tax credit for data centers during his budget address last month.
With no guidelines from state government, local governments have started to propose zoning and environmental regulations for building data centers on farmland as they wait to see what regulations Springfield might pass.
Logan County
Logan County is one of the counties in talks with data center companies. There is currently no formal proposal, but the county has proposed an ordinance to regulate pollution from data centers.
County Board member Michael DeRoss chairs the board's zoning and economic development committee. He said local governments should have final say on zoning data centers and Illinois should only be looking to regulate the environmental impact of data centers.
“Some of these are just computer rooms for the companies that are big companies with big computer rooms," DeRoss said. “So there's an awful lot of moving parts in this whole deal.”
DeRoss said he wants to see data centers built in Logan County, noting how other counties or states could build the data centers which would increase energy costs for Logan County without the direct benefit of added jobs.
“If they stick it in Kentucky—and parts of Kentucky that are on the grid—we're still going to see the negative effects of energy usage with none of the positive externalities,” DeRoss said.
Pekin says no to a data center
One Central Illinois community has already rejected the idea of allowing a data center in their community.
Pekin Mayor Mary Burress said during last week's city council meeting on March 9 the Tazewell County city would not move forward with building a proposed data center because of community push back.
“It has become clear that many in our community have serious concerns about whether this project fits Pekin and the future we envision together,” Burress said.
Burress said there were parts of the proposal that could have benefited Pekin.
“I truly believe there were aspects of this proposal that could have brought opportunity, but it has become clear, very clear, that at this time, it is not the right project for Pekin,” Burress said.
Attendees applauded the decision. Several public commenters said they wanted any financial commitment that may have gone toward the data center project to be invested in other parts of the city.
Illinois lawmakers
Republican state Sen. Chris Balkema, representing a large rural area between Bloomington-Normal and Interstate 80, said local governments should decide for themselves where data centers can be built.
“I think it's best for local governments, municipalities, to decide where they want data centers and where they don't want data centers,” Balkema said.
Balkema said there should be as few government regulations as possible and local governments should have complete zoning control. He said Illinois should look into making environmental regulations, but there needs to be more focus on generating more energy.
“If we end up buying it from other states that produce it through the ways that we shut down, in the big picture, we're not really accomplishing anything in terms of getting more of a green environment,” Balkema said.
Balkema said he didn't want to see data centers built on farmland. He blames the Clean and Reliable Grid Affordability Act [CRGA] as forcing counties to install wind and solar on farmland, saying preserving the state's agricultural beauty will ensure the industry's success.
He believes local governments will keep data centers from being built on farmland.
According to the Illinois Municipal League, local governments still have zoning control over wind and solar. The CGRA does have some zoning regulations but does not take zoning control away from local governments.
Balkema also said Illinois needs to get rid of a law mandating all coal and natural gas plants be phased out by 2045, to continue generating more energy for Illinois. The CRGA did give the Illinois Commerce Commission the ability to create a long term plan to manage the grid with the ability to use any energy source.
Democratic state Rep. Sharon Chung of Bloomington said Illinois is currently investing into expanding energy infrastructure by passing the CRGA.
“We did that with the energy bill last year in veto session. That is there to help expand energy output,” Chung said.
Chung wants to see lawmakers take action, otherwise counties will feel pressured not to adopt their own rules so they can compete with other counties to attract data centers and the jobs they will bring.
Chung said she supports the Power Act and that she wants to give local governments the information and regulations to get the benefits of data centers, while mitigating the negatives.
Chung said Illinois needs to be ahead of the curve because the state has lagged behind when regulating solar and wind energy. She added Illinois should look at regulations by local counties when creating legislation.
The McLean County Board passed zoning rules for data centers last week, allowing them to be built only in manufacturing zones to avoid farmland. The county also wants data center proposals to disclose water usage.
The county is waiting to see if lawmakers will pass regulations before making any more specific regulations.
Chung said Illinois should talk to counties when coming up with guidelines, but wants to leave the decision on where to build a data center up to local governments.
“I think it's really important for the state to try and set some of these guidelines so that we're making sure that we're protecting resources, protecting communities, vulnerable communities,” Chung said.
