Illinoisians will have to wait until at least the fall to see action on an issue that has united residents on both sides of the political spectrum at town hall meeting after town hall meeting: data centers.
The spring legislative session in Springfield came to a close over the weekend and lawmakers decided to punt proposals to reign in the giant developments that have sparked heated debates in several communities.
House Speaker Emanuel Chris Welch says he didn’t have the votes to push new regulations on data centers.
“We just weren’t there this session,” Welch said at a post-session press conference on Monday. “These complex issues take time and when we get there, it’s gonna be done right.”
The proposals would restrict data center water and energy usage – including a law that would mandate they generate their own electricity – or at least enough to offset what they’re using from the grid. Sarah Moskowitz with the Citizens Utility board says as power rates head ever higher, it can’t come soon enough.
“Last June, our Com Ed bills skyrocketed, they went up again this June, and that’s largely because of the strain data centers are putting on the wholesale markets,” Moskowitz told NBC 5.
However, Brad Tietz, Midwest Director of the Data Center Coalition, said data centers aren’t to blame for soaring energy bills.
“When you think about inflation, the need to modernize our grid, extreme weather events — there’s a number of different things at play,” Tietz said, adding that data centers use less water than developments like golf courses, car washes, and manufacturing plants.
A coalition of environmental and consumer groups rallied outside the State Capitol in Springfield on May 30 hoping to spur lawmakers to, at the very least, put a two-year pause on data center tax incentives.
Right now, they get sales tax breaks on construction and equipment, and a rebate of up to 20% on labor costs.
The incentives have totaled nearly $1 billion over the last five years, according to a 2025 report from the Illinois Department of Commerce and Economic Opportunity.
Moskowitz says she’s disappointed lawmakers failed to take action.
“It’s really just to signal we need a minute to figure out how to move forward to make sure these data centers are added to the system without affecting Illinoisans adversely,” Moskowitz said.
A source in the governor’s office says to expect an announcement from Pritzker as soon as the end of this week on possible ways he could pause those tax credits on his own without going through the general assembly. Interestingly, Pritzker advocated for those breaks in 2019 but has since changed his tune.
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