Quick Hits Summary
- The Illinois House Executive Committee convened a subject matter hearing to continue discussions surrounding the proposed “Power Act” and the growing impacts of data center development on Illinois’ electric grid, water infrastructure, energy affordability, and local communities.
- Utilities and grid operators warned lawmakers that data center-driven electricity demand is increasing at an unprecedented pace and could significantly impact Illinois’ electric grid and long-term infrastructure planning.
- ComEd, Ameren Illinois, and PJM representatives emphasized that new large-load customers should bear the full costs associated with infrastructure upgrades and reliability protections to avoid shifting costs onto existing ratepayers.
- Industry representatives cautioned that the proposed “Power Act” and a potential pause on data center tax incentives could discourage billions of dollars in investment and push projects to neighboring states.
- Environmental advocates and academic experts argued that additional state oversight is necessary to address concerns related to water usage, electricity demand, pollution, transparency, land use, and community impacts associated with hyperscale data centers.
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Committee Chair and State Representative Carol Ammons explained that the hearing was intended to help lawmakers better understand the “possibility and probability of the needs of the State of Illinois” as energy demand continues to increase rapidly due to large-scale computing facilities and artificial intelligence infrastructure.
Representatives from utilities and grid operators emphasized the unprecedented pace of projected electricity demand growth. Max Lightman of ComEd testified that ComEd is currently managing a pipeline of nearly 100 large-load projects totaling approximately 33,000 megawatts of demand — exceeding the utility’s historic system peak of roughly 24,000 megawatts accumulated over more than a century. He explained that ComEd has implemented a “cluster study” process to evaluate the cumulative impacts of large-load projects and determine necessary infrastructure investments before projects are approved.
Stephen Bennett of PJM Interconnection described the current moment as “paradigm shifting” for the electric utility industry, noting that projected load growth associated with data centers is unlike anything the industry has experienced, including periods of rapid industrialization and the expansion of air conditioning. Bennett stressed that PJM’s primary responsibility is maintaining grid reliability and explained that regional transmission organizations cannot allow large loads to connect unless sufficient generating capacity exists to support them.
Witnesses repeatedly emphasized concerns surrounding electric reliability and customer affordability. Ameren Illinois and ComEd representatives testified that utilities are developing additional tariff protections and financial security agreements designed to ensure that data centers and other large-load customers bear the full cost of the infrastructure needed to serve them. Eric Whitfield of Ameren Illinois stated that utilities follow a “cost causer is the cost payer” principle and argued that large customers can ultimately help spread fixed system costs across more users.
Industry representatives cautioned lawmakers against imposing overly restrictive regulations or pausing existing data center tax incentives. Brad Tietz of the Data Center Coalition warned that Illinois is already losing market share to neighboring states such as Indiana, Wisconsin, Iowa, and Missouri. Teets argued that the proposed Power Act would create one of the most expansive regulatory frameworks for data centers in the nation and could discourage billions of dollars in investment, union construction jobs, and local tax revenue. He also emphasized that the data center industry is prepared to discuss issues such as water use, energy costs, and community benefits through stakeholder negotiations.
Several witnesses expressed strong support for additional state oversight and reporting requirements. Professor Anita Chan of the University of Illinois Urbana-Champaign testified that the Power Act would establish “common sense guardrails” to address public concerns surrounding energy use, water consumption, land use, and community impacts. Chan cited examples from other states where local governments and residents have opposed or imposed moratoriums on hyperscale data center development due to concerns about water scarcity, rising electricity prices, and infrastructure impacts.
Water usage emerged as a recurring topic throughout the hearing. Jason Stevenson of Illinois American Water testified that data center water usage varies significantly depending on facility design and cooling systems, ranging from approximately 14,000 gallons per day to nearly 900,000 gallons per day in some cases. Stevenson stated that utilities are exploring contractual limits, infrastructure controls, and potential penalties to ensure large users do not negatively impact existing customers during periods of high demand or drought conditions. Witnesses also discussed the potential use of treated wastewater and recycled water systems for industrial cooling purposes.
Environmental advocates argued that the Power Act is necessary to ensure data centers develop additional clean energy resources rather than increasing reliance on fossil fuel generation. James Gignac of the Union of Concerned Scientists and the Illinois Clean Jobs Coalition testified that data centers could account for up to 72 percent of Illinois electricity demand growth by 2030. Gignac argued that large-scale facilities should be required to support renewable generation and distributed energy resources in order to reduce pressure on the grid and avoid increasing pollution burdens on Illinois communities.
Committee members questioned witnesses extensively about cost allocation, transparency, water reporting requirements, local siting concerns, and the balance between economic development and consumer protection. Lawmakers also discussed whether Illinois should prioritize rapid deployment of emerging technologies or move more cautiously in light of growing community concerns and infrastructure pressures.
The hearing concluded without committee action, but testimony highlighted the growing debate over how Illinois should regulate hyperscale data center development while balancing grid reliability, affordability, environmental goals, and local community impacts. Additional discussions and negotiations regarding the Power Act are expected to continue in the coming weeks.