Illinois and Kentucky Governors Push Data Center Regulations

Governors in Illinois and Kentucky are pursuing statewide frameworks to regulate hyperscale data center construction as local municipalities struggle with the impacts of rapid development.

In Illinois, Governor J.B. Pritzker is urging the General Assembly to pass uniform regulations, specifically the POWER Act, to increase transparency for communities during the pitching process. The Illinois General Assembly failed to pass the act in June but is expected to revisit the legislation during veto sessions in November and December.

In Kentucky, Governor Andy Beshear issued an executive order requiring data centers to cooperate with local communities and avoid increasing power bills. However, critics argue the order lacks enforcement power. Democratic Representative Adam Moore organized a listening session in Frankfort where residents demanded legislative guardrails to address pollution, utility costs, and tax incentives.

While Kentucky expanded state tax breaks for data centers in 2025, the Republican-controlled General Assembly has not passed comprehensive protections. Some members of the assembly argue that control over development should remain at the local level.