Data centers are one of the biggest and most controversial issues facing Illinois right now, and the two major-party candidates for governor only seem to offer extreme positions.
On the one side is Gov. JB Pritzker, who has been all-in on data centers since 2019. He has handed out over $666 million, and potentially as much as $1 billion, in tax breaks with virtually no safeguards for Illinoisans. While that made Illinois a top target for data center development, it left taxpayers vulnerable, risked our water supply and threatened our electrical grid. After guardrails didn’t materialize in the latest General Assembly session, Pritzker did the right thing recently and paused new tax incentive agreements.
At the other extreme is Darren Bailey, who wants to ban or shut down the industry in Illinois entirely. This ignores the reality that data centers locating in neighboring PJM Interconnection or Midcontinent Independent System Operator grid states will still drive up energy rates in Illinois, but without providing any offsetting benefits for our residents. It also forfeits high-paying jobs, local tax revenue and regulatory leverage.
Neither extreme works.
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The good news? Stakeholders in Illinois are already laying the groundwork for a more responsible path forward. Environmental advocates put forward the POWER Act (S.B. 4016/H.B. 5513), led by two Democrats, state Sen. Ram Villivalam of Chicago and Rep. Robyn Gabel of Evanston. And organized labor, led by Local 150’s Marc Poulos, recently released a more pragmatic legislative framework.
The problem at this point isn’t a lack of good ideas. It’s a lack of executive leadership willing to lead on a consensus path forward.
Here is what a commonsense strategy for Illinois looks like:
• Negotiate data centers transparently: Too often, data center developers require nondisclosure agreements with local officials while operating under code names and hiding their intentions during the zoning process. We must end perpetual NDAs and require data center negotiations to occur in full view of the public, with mandatory public hearings, so residents have a say. Once built, facilities should publicly report their energy and water usage, which Rockford Democratic Sen. Steve Stadelman’s S.B. 2181 would require.
• Protect energy ratepayers: Data centers must bear 100% of the cost for their energy and grid infrastructure so they don’t drive up electric bills for everyone else. This requires a mix of short- and long-term generation to offset their demand. Short term, a “bring your own generation” model focused on wind, solar, battery storage, small modular reactors and natural gas. Long term, investment toward large-scale nuclear and advanced geothermal.
• Reduce water consumption: Fresh water is one of our state’s greatest natural resources, and we must protect it. Data centers consume millions of gallons daily. We must make closed-loop and modern cooling systems the baseline standard while providing incentives for facilities that use treated wastewater instead of drinking water.
• Deliver real property tax relief: Data centers must publicly negotiate and sign binding community benefit agreements with local governments to ensure residents benefit. Data centers should also be required to pay into a dedicated state property tax relief fund to lower property tax bills for homeowners across the region.
• Respect neighboring communities: As a recent fight in Hoffman Estates showed, neighboring towns currently have no voice when municipalities approve data centers on their borders. S.B. 1050, sponsored by GOP state Sen. Darby Hills of Barrington Hills, would give surrounding communities of a proposed data center development a seat at the table.
• Reform Illinois’ Biometric Information Privacy Act to attract top-tier developers: BIPA has become the single biggest barrier for major tech developers. Data facilities should not face massive legal liability simply for housing cloud data on their servers. Modernizing BIPA would bring world-class, deep-pocketed developers to Illinois, the ones that can afford the strict environmental, energy and community standards we demand.
This commonsense path would enable smart economic growth while protecting our natural resources and environment, shielding families from soaring utility bills, empowering local residents and delivering property tax relief for Illinoisans.
Collin Corbett is an independent running for governor of Illinois.
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