Data centers in Illinois

📜 State laws

POWER Act (HB 5513 / SB 4016): data center rules, not passed yet · May 31, 2026
The POWER Act was filed Feb. 6, 2026, by Rep. Robyn Gabel (House) and Sen. Ram Villivalam (Senate). It would make very large data centers bring their own new clean power, pay their own grid costs, use the most water-saving cooling, plan for water shortages, and report water use every 3 months. It would also require community benefits agreements, extra public notice, and ban secret deals (NDAs) with local governments. The bill got four House hearings but no vote before the session ended May 31, 2026. It was sent back to the Rules Committee. Supporters hope to pass it in the fall veto session (November and December 2026) or in early January 2027. Source

New clean-air rule for data center diesel generators (Tier 4) · Jan 8, 2026
A big energy law (SB 25, the Clean and Reliable Grid Affordability Act, Public Act 104-0458) was signed Jan. 8, 2026, and took effect June 1, 2026. It changes the state air permit rules for data centers. For air permits applied for starting 6 months after it took effect (Dec. 1, 2026), each new diesel backup generator at most data centers must be as clean as the strict federal 'Tier 4' standard. The generators may only run as emergency or standby units. Older generators are not affected. Most new diesel generators today only meet Tier 2 or Tier 3, so this usually means adding pollution filters. Source

Governor paused new data center tax break deals (from July 1, 2026) · June 5, 2026
On June 5, 2026, Governor JB Pritzker told the state Department of Commerce (DCEO) to stop processing new data center tax break agreements starting July 1, 2026. News reports call it a two-year pause. Deals already signed keep going. Pritzker said lawmakers should first pass rules that make data centers pay their own energy and water costs, support clean energy, report water use, meet air standards, sign community benefits agreements, and let utilities cut their power when the grid is strained. Source

Megaprojects bill (HB 910) would not cover data centers · April 28, 2026
HB 910 is a 'megaprojects' bill (best known for a possible Chicago Bears stadium). News reports say it bans data centers from being approved as megaprojects. The House passed it in April 2026. It has been waiting in the Senate Assignments Committee since April 28, 2026. Source

💡 Who pays for the power

ComEd: bigger deposits for data centers (approved March 2026) · March 20, 2026
In March 2026 the Illinois Commerce Commission (ICC) approved new ComEd rules for 'large demand' customers (50 megawatts or more), meaning mostly data centers (cases 25-0677 and 25-0679). Developers now pay a deposit of $1 million for 50 to 200 megawatts, plus $500,000 for each extra 100 megawatts. If the deposit would be over $2 million, they also need a bank letter of credit. If a project is canceled, ComEd keeps what it already spent, so other customers do not pay for it. ComEd said it had 75 such requests, totaling about 28,000 megawatts, more than its all-time peak of about 24,000 megawatts. Source

State investigation: should data centers pay under their own rate rules? · April 23, 2026
The ICC ordered a formal investigation into how ComEd should serve data centers without shifting costs onto other customers. It opened as case 26-0364 on April 23, 2026, and was planned to take about 8 months. It looks at a separate rate structure for data centers, deposit and collateral rules, and who pays for grid upgrades. ComEd must also file a yearly report on large-customer studies starting Feb. 1, 2027. Source

ComEd bills: higher supply price tied to data center demand · June 10, 2026
Northern Illinois (ComEd) is part of the PJM power grid. PJM's 'capacity' auction price for June 2026 to May 2027 was $329.17 per megawatt-day, about 11 times the price two years earlier. PJM's market monitor said data center demand was the main reason. ComEd estimated bills about 12% higher on average for that year. From October 2026 to May 2027, ComEd's supply price is 10.103 cents per kilowatt-hour, about 53% higher than two years ago. A state-law credit (from CEJA) offsets part of it. High prices are expected through at least May 2028. Source

Ameren bills: higher supply price (MISO grid) · June 11, 2026
Central and southern Illinois (Ameren) is part of the MISO power grid. MISO's summer capacity price for June 2026 to May 2027 was $424.30 per megawatt-day, about 14 times the 2024 price ($30). From October 2026 to May 2027, Ameren's supply price is 10.441 cents per kilowatt-hour for the first 800 kWh, about 29% higher than two years ago. The Citizens Utility Board says data center demand is one of several causes. Source

State study: power shortfalls possible from 2029, driven partly by data centers · Dec 15, 2025
On Dec. 15, 2025, three state agencies (the Illinois Power Agency, Illinois EPA and ICC) released a study warning that northern Illinois (ComEd) could run short of power plants by 2029 and downstate (Ameren) by 2031, largely because of data center growth. Source

💵 Tax breaks

Data Center Investment Program: sales tax breaks (new deals paused) · July 1, 2026
Since 2019, data centers that sign a deal with DCEO can skip state and local sales and use taxes on their equipment for up to 20 years (certificates are renewed every 5 years). To qualify, a project must invest at least $250 million within 5 years, create at least 20 full-time jobs paying at least 120% of the county's average wage, be carbon neutral or get a green building certificate within 2 years, and use a project labor agreement. Data centers in 'underserved areas' can also get a credit worth 20% of construction wages. By the end of 2025 the state had 34 signed deals, all in the Chicago area (14 in Elk Grove Village; others in Chicago, Northlake, Aurora, DeKalb, Grayslake and more), promising $10.7 billion of investment and 731 jobs. The size of the tax breaks is unclear: DCEO's 2025 report estimates about $667 million, but its earlier report said $983 million through 2024. Capitol News Illinois says much of the change involves one DeKalb site and may fix an earlier error. DCEO stopped taking new applications on July 1, 2026, on the Governor's order; signed deals continue. Source

🤐 Secret deals and public records

Public records (FOIA): anyone can ask · Oct 7, 2026
Under the Illinois Freedom of Information Act, any person may ask a city, village, county, school district or state agency for records. You must ask in writing (email is fine). You do not have to say why, except to say if it is for a business (commercial) purpose or if you ask for a fee waiver. The office must answer within 5 business days. It can extend that once by up to 5 more business days for listed reasons. No answer in time counts as a denial. Good records to ask for: water and power agreements, developer letters and emails, tax break applications, and any NDA. Source

If your records request is denied: free review by the Attorney General · Oct 7, 2026
If a local or state office denies your request (or does not answer), you can ask the Attorney General's Public Access Counselor (PAC) to review it. You must file within 60 days of the denial. Send a signed written request with a copy of your original request and any answers. Phone: 1-877-299-FOIA (3642), email Public.Access@ilag.gov. Source

Secret deals (NDAs) are not banned in Illinois · Oct 7, 2026
No Illinois law stops local officials from signing secret deals (NDAs) with data center developers. The POWER Act would ban them, but it has not passed. Residents can ask whether an NDA was signed and request a copy through FOIA; even a partly blacked-out copy shows who signed it and when. Source

Open meetings: your right to speak · Oct 7, 2026
Under the Illinois Open Meetings Act, any person must be allowed to speak to a public body at its meetings, following the rules the body has set and recorded (for example, time limits or sign-up sheets). Source

💧 Water

Who approves the water a data center uses · April 23, 2026
Most data centers buy water from a city, village or water district, so that local system and its council or board decide whether to serve them. There is no state permit just for data center water use, and no rule that data centers must report how much they use. Lawmakers held hearings on this in April 2026; the POWER Act would require water plans and reports every 3 months, but it has not passed. Source

Big new wells: local review under the Water Use Act · Oct 7, 2026
If someone plans a new high-capacity well (about 100,000 gallons a day or more), they must tell the county Soil and Water Conservation District before building it. The district tells nearby towns with water systems, and reviews the effect on other water users with the Illinois State Water Survey and State Geological Survey within 30 days. The findings must be made public. The law also requires yearly water-use reports from big wells, but compliance is described as low and enforcement is weak. Source

Lake Michigan water (Chicago area) · Oct 7, 2026
Any use of Lake Michigan water in Illinois needs an allocation permit from the Illinois Department of Natural Resources (Lake Michigan Management Section, Chicago office). Lake Michigan water serves towns and businesses in Cook, Lake, DuPage, Kane and Will counties. A U.S. Supreme Court decree caps how much Illinois can take. Towns with permits must file yearly water audits. Source

🌫️ Air and generators

Air permits for backup generators (Illinois EPA) · June 1, 2026
The Illinois EPA (Bureau of Air) issues air permits for data center backup generators and for any gas power plants. Very small generators (under 1,500 horsepower) can be exempt, but big data centers usually need a construction permit and an operating permit. The Chicago and Metro East (St. Louis) areas have 'serious' ozone pollution, so limits there are stricter. In some 'environmental justice' areas, the Illinois EPA requires air modeling. Permits close to major-source size get a public comment period of at least 30 days. From Dec. 1, 2026, new diesel generators at most data centers must meet Tier 4 standards. Source

🙋 How to have your say

Who decides a data center near you · Oct 7, 2026
Inside a city or village, the city council or village board decides zoning, usually after a plan commission or zoning board hearing. Outside towns (unincorporated land), the county board decides, after a hearing by the county zoning board of appeals. Illinois townships usually do not zone, but a township with a plan commission can object to a county rezoning (see below). Power, water and tax deals are separate decisions by the utility, water system, council or county. Source

County rezonings: protests that force a 3/4 vote · Oct 7, 2026
A county rezoning needs a hearing before the zoning board of appeals, with at least 15 days' notice in a local newspaper. The county board then votes. A simple majority is enough, unless there is a written protest. A protest signed by owners of 20% of the land, or of 20% of the land touching it, or a resolution from a nearby town (within 1.5 miles), means 3/4 of all county board members must vote yes. In counties under 600,000 people, a township with a plan commission can file written objections within 30 days after the hearing; then a 3/4 vote is also needed. Protests must be mailed (certified) to the applicant. Source

City and village rezonings: protests that force a 2/3 vote · Oct 7, 2026
A city or village rezoning needs a public hearing, announced in a newspaper 15 to 30 days before. If owners of 20% of the frontage of the land, or of the land next to it or across from it, file a signed written protest with the clerk, the rezoning needs a 2/3 vote of all council members or trustees. A copy must be sent by certified mail to the applicant. Source

Going to court: 90 days · Oct 7, 2026
A county board or city/village decision on a special use, variance or rezoning can be challenged in court. The case must be filed within 90 days of the decision. Courts look at it fresh ('de novo'), and fair-process (due process) rules apply at every step. Source

Comment at the Illinois Commerce Commission (ICC) · Oct 7, 2026
Anyone can comment on an ICC case, such as the data center investigation (case 26-0364) or a utility rate case. Use the ICC's e-Docket website, or call the ICC (its consumer line is 1-800-524-0795). The Citizens Utility Board (CUB) also represents residential customers in these cases. Source

Comment on an air permit · Oct 7, 2026
Illinois EPA posts draft air permits that are open for public comment on its Bureau of Air public notices page, with the comment deadline. You can send comments and ask for a public hearing during that period. Source

Tell state lawmakers what you think · Nov 2026
The POWER Act and other data center bills may come up in the fall veto session in November and December 2026. You can contact your state representative and senator about them. Source

🧾 Help with your bills

LIHEAP: help with heating and power bills · Oct 7, 2026
The Low Income Home Energy Assistance Program helps pay home energy bills, mostly for winter heat. Apply through your local community action agency (find it on DCEO's 'Where to Apply' list) or call the Help Illinois Families line at 1-833-711-0374. Source

Low-income electric discount (ComEd and Ameren) · Jan 1, 2026
ComEd started a low-income discount on Jan. 1, 2026; Ameren Illinois' electric discount was set to start June 1, 2026. The discount is tiered: the lowest incomes get the biggest discount. It aims to keep energy costs under 3% of income (6% for homes with electric heat). LIHEAP recipients are signed up automatically; others can apply to their utility. Source

📞 Who to contact

Illinois Commerce Commission (ICC) · Oct 7, 2026
Sets rules and rates for ComEd, Ameren Illinois and other utilities, including the data center deposit rules and the large-load investigation. Takes public comments and consumer complaints (1-800-524-0795). Source

Illinois Environmental Protection Agency (Illinois EPA) · Oct 7, 2026
Issues air permits for data center generators and gas plants, and water discharge permits. Posts draft permits for public comment. Source

Department of Commerce and Economic Opportunity (DCEO) · Oct 7, 2026
Runs the data center tax break program (new deals paused since July 1, 2026) and LIHEAP energy bill help. Source

Illinois Department of Natural Resources, Office of Water Resources · Oct 7, 2026
Issues Lake Michigan water allocation permits and permits for work in rivers, lakes and streams. Source

Illinois State Water Survey · Oct 7, 2026
Tracks water use and supplies; helps review new high-capacity wells under the Water Use Act. Source

Attorney General, Public Access Counselor · Oct 7, 2026
Free review when a records (FOIA) request is denied, and Open Meetings Act complaints. 1-877-299-3642, Public.Access@ilag.gov. Source

Illinois Power Agency (IPA) · Oct 7, 2026
State energy agency; co-wrote the December 2025 study warning of power shortfalls from 2029. Source

Citizens Utility Board (CUB) · Oct 7, 2026
Nonprofit consumer group that speaks for utility customers at the ICC, pushes for data center cost rules, and explains bill changes. Source

Illinois General Assembly · Oct 7, 2026
Find your state representative and senator, follow bills like HB 5513 (POWER Act). Source