Illinois Fails to Pass Data Center POWER Act by Deadline

The Illinois General Assembly failed to pass the POWER Act by the May 31 deadline, delaying a comprehensive regulatory framework for the state's expanding data center industry. The legislation seeks to establish guardrails for water use reporting, community benefits agreements, and mandates for data centers to fund their own renewable energy generation to protect utility affordability and natural resources.

JB Pritzker, the Governor of Illinois, previously proposed suspending data center tax credits in February. Since 2019, at least 27 data centers have received an estimated $983 million in lifetime tax breaks. Lawmakers and the Illinois Clean Jobs Coalition continue to urge the state to pause these incentives to prevent profitable corporations from receiving further subsidies while the industry grows rapidly.

Legislators have decided to move further stakeholder negotiations to the summer. The delay follows calls for additional hearings to refine the bill's impact on marginalized communities and the energy landscape. Supporters of the act maintain that the measures are necessary to ensure industrial growth does not undermine stability for Illinois families.