Illinois and San Jose Propose Strict Data Center Regulations
Government leaders in Illinois and San Jose are introducing regulations to limit the environmental impact and utility costs associated with expanding data center infrastructure.
Government officials in Illinois and San Jose are moving to regulate the rapid expansion of data centers to protect local utilities and natural resources. In Illinois, Governor J.B. Pritzker announced that legislation, including the POWER Act, is expected for the fall veto session in November and December. The proposed laws aim to prohibit cost shifting to residents, ban nondisclosure agreements with local governments, and mandate that facilities use closed-loop water systems and independent clean energy sources.
Pritzker previously ordered a pause on state tax incentives for data centers effective July 1. While state representatives emphasize that quality-of-life issues and utility costs must take priority, Republican candidate Darren Bailey argues that developers should directly fund power grid upgrades to lower electric bills for families.
Simultaneously, the city of San Jose presented draft regulations on October 16 for facilities drawing 20 megawatts or more. The rules would require 100% carbon-neutral power and ban the use of drinking water in open cooling systems. While Mayor Matt Mahan advocates for regulation over bans to maintain tax revenue, some residents are demanding an immediate moratorium on new facilities due to noise pollution and the disproportionate impact on South San Jose. The San Jose Silicon Valley Chamber of Commerce supports the move toward predictable standards. Final draft standards will go before the Planning Commission on November 18, with City Council votes scheduled for December.
