Questions loom after data center legislation stalls

By Jim Talamonti | The Center Square
The Center Square

(The Center Square) – The speaker of the Illinois House says he thinks state lawmakers will eventually pass data center regulations, but questions remain over why legislation stalled this spring.

The Illinois Clean Jobs Coalition said the state’s House and Senate leadership is woefully out of touch for continuing data center tax breaks and failing to advance basic protections.

“Despite the POWER Act’s overwhelming bipartisan popularity and voters’ growing concerns about data center developments across the state, lawmakers went home without solutions,” the coalition said in a statement.

Senate Bill 4016 and House Bill 5513 include provisions to prohibit cost shifting, ensure data centers power their own operations, and provide clean energy incentives. The POWER Act also would prevent data centers from signing nondisclosure agreements with local governments.

Gov. J.B. Pritzker said he proposed pausing the tax credits.

“I believe that data centers ought to be paying their fair share and that they ought to be bringing their own energy with them,” Pritzker said after the legislative session ended on Monday morning.

Illinois House Speaker Emanuel “Chris” Welch, D-Hillside, said he wanted to make sure the Democratic caucus was in a good place.

“We just weren’t there this session. These complex legislative issues take time. I do think we’re going to eventually get there, and when we get there it’s going to be done right,” Welch said.

Welch said lawmakers had hearing after hearing on data centers.

During a House Revenue Committee hearing on Sunday, state Rep. Amy Elik, R-Alton, asked state Rep. Curtis Tarver, D-Chicago, why Pritzker’s proposal to pause data center tax credits got left out of revenue legislation.

“You asked me something that I would like to share. I would love to share anything, but I don’t have that information,” Tarver said.

At a press conference a short time later, Elik explained her next question.

“And I said this is not the governor’s question. This is for the Democrats in the majority and why you didn’t decide to take on that pause in the data center tax credits. Once again, we got no answer for that,” Elik said.

The Data Center Coalition said it is clear that lawmakers and stakeholders understand the thoughtfulness and nuance that will be needed to establish a regulatory framework that is targeted, fair, and implementable.

“Make no mistake, the industry continues to face significant regulatory challenges and uncertainty in Illinois that must be considered in future discussions and the DCC is committed to continuing those discussions this summer and beyond,” Data Center Coalition State Policy Director Brad Tietz said in a statement.