* From the Union of Concerned Scientists…
Data centers are coming to Illinois, requiring massive amounts of electricity at a time when household bills are already on the rise. A new report released today by the Union of Concerned Scientists (UCS) highlights the effects of data centers’ growing electricity demand on Illinois’ power grid and how decisionmakers can mitigate harmful impacts on people and businesses by driving more clean energy development and adopting stronger ratepayer protections in the state. […]
A state-specific fact sheet shows that in Illinois, data centers will account for up to 64% of electricity demand growth by 2030 in the UCS mid-level data center demand growth scenario. Without better ratepayer protections, over the next 25 years such data center growth could put Illinoisians at financial risk of $24 billion in electricity systems costs, UCS reports. Absent stronger policies, data center load growth will also lead to worsening pollution from Illinois’ fossil fuel power plants and rapidly escalate the state’s reliance on out-of-state electricity.
Conversely, the UCS analysis shows that by adopting more robust state and federal clean energy policies to meet this demand, Illinois would see the economic benefits of more clean energy development and deliver up to $2.8 billion in health savings and avoid $112 billion in global climate damages between now and 2050.
“As the AI boom is already reshaping the energy landscape, modernized polices specific to data centers are urgently needed to protect Illinois’ clean energy future and its electricity ratepayers,” said James Gignac, report author and Midwest policy director for the Climate and Energy Program at UCS. “Without taking steps like requiring data centers to pay for building new renewable energy sources rather than gas plants, their electricity demand will increase pollution and dramatically escalate Illinois’ reliance on imported power from other states. Common-sense measures to protect ratepayers and grow clean energy in Illinois is the path we need.”
The full report is here.
* The Daily Herald has a good story on the study. You should read the whole thing, but here’s an excerpt about other perspectives…
ComEd is an electricity provider, not a producer, but its Director of Economic Development Max Leichtman said the company is already taking steps that could make legislation unnecessary regarding the financial aspect of the UCS proposal.
The utility has introduced “Transmission Security Agreements” for large electricity users like data centers to protect other customers and ensure fairness.
These would provide more financial security, such as a letter of credit, if a developer didn’t follow through after expensive electricity infrastructure is built. […]
[Data Center Coalition Director of State Policy Brad Tietz] felt a mandate could diminish the benefits flexibility has brought developers in providing their own clean energy. […]
“You don’t want to make yourself an outlier,” [Tietz] added. “There is recognition that Illinois is starting to lose its position in the top five and we don’t want that.”
- Oklahoma - Monday, Jan 26, 26 @ 9:20 am:
Electricity, water, noise, privacy, killing jobs…
- very old soil - Monday, Jan 26, 26 @ 9:24 am:
https://www.theguardian.com/technology/2026/jan/26/georgia-datacenters-ai-ban
- Who else - Monday, Jan 26, 26 @ 9:31 am:
==“You don’t want to make yourself an outlier,” [Tietz] added. “There is recognition that Illinois is starting to lose its position in the top five and we don’t want that.”==
What if I told you we actually do want that?
- 4 percent - Monday, Jan 26, 26 @ 9:45 am:
@who else
Ridiculous argument. Data centers are going to be built whether in Illinois or elsewhere. The need for data centers will not be decreasing so either Illinois is in line for construction jobs, tax revenue and more - or we lose to other states.
We have regional energy grids. So power generated in Illinois will still be used for data centers even if not located here.
Water is not an issue - rather a red herring - as most data centers are closed loop systems.
Always love all the folks that are opposed to things like data centers or fossil fuels but then rely on them when using their cell phones or heating their homes in a polar vortex. /s
- Tom - Monday, Jan 26, 26 @ 9:45 am:
The enviros are making this their new fracking. I think the data centers should pay higher rates and residential should not subsides them, but they are needed and Illinois should court them.
- cognitive dissonance - Monday, Jan 26, 26 @ 9:52 am:
On the UCS report, it’s worth noting that the latest California load forecast projects new demand from EVs and building electrification to be roughly three times larger than demand from data centers—despite California being, for obvious reasons, a major hub for data center development. Electrification is a central objective of CEJA and will significantly increase overall electricity demand. It will be interesting to see how this tension is addressed going forward by UCS and others.
- Steve - Monday, Jan 26, 26 @ 10:06 am:
Northern Illinois is a very good place to have data centers because of the temperature and geography. Whether they get built here is up to investors. Other states are right to work states with less regulation. Only time will tell.
- P. - Monday, Jan 26, 26 @ 10:41 am:
Got to keep that AI slop cranking. Aside from “jobs” - construction jobs - there’s no zero local measurable benefit. It is the new fracking no one needs to make it the new fracking. Zapping our resources and jacking up already high utility rates to benefit corporate bottom lines. Of course they should pay their fair share and pay as the go. Let them build in NW Indiana (or SW Wisconsin) if they don’t like it. That’s what we are doing with the Bears. The Bears want to build a big waste of space tax break complex but at least they don’t want to destroy our natural resources. Make it make sense.
- Fenton - Monday, Jan 26, 26 @ 10:41 am:
Hard to believe, but the ComEd plan actually seems pretty good. Make the data centers pay more up front and have a bond to cover any stranded costs that might pop up in the future. That will make it less likely that data center infrastructure costs will be socialize among ratepayers.
Unfortunately, like a lot of energy policy, this requires a national solution and we are very much unlikely to get one.
- Mike Murphy - Monday, Jan 26, 26 @ 10:49 am:
Opposing data centers is shortsighted. They are essential infrastructure for AI and modern technology. Because energy comes from a regional grid, impacts occur regardless of location. If built elsewhere, we still bear energy effects while losing construction jobs, long-term employment, and significant property tax revenue that support local economic growth.
- River Beaver - Monday, Jan 26, 26 @ 11:03 am:
Illinois needs to move forward with the times and accept new industries. Newer data centers are not reliant on recycling a constant supply of water. Over the long term, they provide revenue and on a larger scale, help our country remain competitive on a global technological scale.
As far as energy, the “clean energy” thing is a great idea and slogan. Everyone probably agrees on the ideals. But using government to force clean energy as opposed to letting it evolve naturally is a broken pipe dream. Build more power plants in Illinois now with current technology and reduce costs for everyone. Move to better sources when the market evolves them organically and stop trying to use force.
- Siualum - Monday, Jan 26, 26 @ 11:25 am:
From what I know (which probably isn’t much), I don’t have any objection to data centers, as long as they pay their fair share of property taxes, are environmentally neutral, and we residential and small business folks aren’t subsidizing their electric bills.
- Huh? - Monday, Jan 26, 26 @ 11:29 am:
Can’t wait for the rolling blackouts because the data centers have to have their electricity. Meanwhile, granny is suffering in the summer heat without her air conditioning.
- Cornerfield - Monday, Jan 26, 26 @ 11:31 am:
“Water is not an issue - rather a red herring- as most data centers are closed loop systems”
Then we should have a regulation that mandates that for all data centers. Not just most.
Furthermore, data centers basically convert electricity into heat. It makes sense to have a regulation that mandates that data centers incorporate technologies and systems that repurpose that heat as a resource instead of a waste byproduct. There are lots of ways to do this. This is already starting to be done in Europe, etc.
Also, it surely isn’t cost effective just yet, but I think it would be swell if in the near future data centers were forced to make their own electricity with their own micro nuclear reactor once those become a thing.
- Streator Curmudgeon - Monday, Jan 26, 26 @ 12:05 pm:
I hear a lot about data centers but almost nothing about small nuclear reactors to meet the ongoing need for more electricity.
We seem to have developed this AI technology extremely fast but why haven’t we seen the same breakthroughs with small nukes?
It would be nice–but probably never happen–if AI data centers would operate like state-licensed slot machines, constantly kicking back revenue to local government.
- Rich Miller - Monday, Jan 26, 26 @ 12:07 pm:
===but why haven’t we seen the same breakthroughs with small nukes?===
The obvious answer is in the last word of your question.
- Who else - Monday, Jan 26, 26 @ 12:24 pm:
@4 percent
Looks like I hit a nerve, but my position is not unique or poorly thought through. If government cannot figure out how to bring down the cost of energy for normal people, I’m not sure how it can justify providing tax incentives for data centers to locate here. Data centers are wildly unpopular with the public whether you characterize criticisms of data centers as red herrings or not.
In light of the all the negatives, I’d say until we figure out how to get them to pay their own way and make the public more comfortable with them, we can hold off on naming data centers the patron saints of economic development.
- @misterjayem - Monday, Jan 26, 26 @ 1:24 pm:
The meer assertion that something is “inevitable” 1) doesn’t make it true, and 2) isn’t a compelling argument.
Argue that these corporate energy vampires are beneficial.
If you can.
– MrJM
- GoneFishing - Monday, Jan 26, 26 @ 1:32 pm:
Unfortunately demand for data centers by businesses will continue to increase no matter if people want them or no. Not just for AI but for all kinds of cloud computing applications. My company still has a lot of old-style data warehouses that need to be moved. Everything that people rely one requires them. They need to be build in a smart matter but more are coming.
- New Day - Monday, Jan 26, 26 @ 1:54 pm:
“Furthermore, data centers basically convert electricity into heat. It makes sense to have a regulation that mandates that data centers incorporate technologies and systems that repurpose that heat as a resource instead of a waste byproduct. There are lots of ways to do this. This is already starting to be done in Europe, etc.”
Actually, waste heat recovery has been done for more than 50 years. Europe is way ahead of the US in this area but the US has some enormous projects. The heat can be used to generate additional clean electricity or to heat or cool (heat powers chillers). There’s actually a steel plant in NW Indiana that generates hundreds of megawatts of clean power this way.
- River Beaver - Monday, Jan 26, 26 @ 2:20 pm:
==The meer assertion that something is “inevitable” 1) doesn’t make it true, and 2) isn’t a compelling argument.==
If only it were this simple. I think about this every time an engine auto starts and stops at a stop light.
- cermak_rd - Monday, Jan 26, 26 @ 5:17 pm:
I’m not in favor of my electric rates going up or having brownouts because some idiot wants to crank out cheap, soulless ad-copy with AI. Build them elsewhere and island our state off the regional grid so we aren’t a part of it and don’t have to share. Then build more nukes to make sure we have our electricity bases covered. The feds keep taking our money and giving us less why should we play nice regionally?
- Brave New World - Monday, Jan 26, 26 @ 6:13 pm:
==Build them elsewhere and island our state off the regional grid==
IL has done a fine job becoming the black hole of MISO when it comes to generation. But that also has caused the problem you mention with your rates. It’s expensive transmitting all that fossil fuel generated energy into the state.
- rnug - Monday, Jan 26, 26 @ 6:52 pm:
== why haven’t we seen the same breakthroughs with small nukes? ==
Short answer is that every nuke in the US was / is custom designed. If we followed the Europeans just duplicating a few proven designs, they could be built faster and cheaper.
- Rich Miller - Monday, Jan 26, 26 @ 7:26 pm:
=== It’s expensive transmitting all that fossil fuel generated energy into the state===
Maybe get off Facebook or whatever awful place you mainly exist.
We’re still exporting to the rest of MISO.
“Capacity shortages in downstate Ameren’s territory are expected to begin in 2031 and escalate through 2035″
https://chicago.suntimes.com/columnists/2025/12/19/illinois-electricity-shortages-data-centers-comed-rich-miller