Illinois data center and energy bills
Every data center and energy bill in the Illinois Legislature, what each would do, and where it stands. 29 states enacted data center and energy laws in the 2025 and 2026 sessions. Illinois has bills in progress and none enacted yet.
23 new Illinois laws take effect in 2027
- Bills in scope
- 23bills in scope
- Past committee
- 2past committee
- Most recent action
- 19 October 2026most recent action
Data center and energy in Illinois, by topic
Tax incentives and clawbacks
6 bills. Enacted in 11 states.
Siting, zoning and permitting
5 bills. Enacted in 8 states.
Water, cooling and emissions
3 bills. Enacted in 7 states.
On-site and co-located generation
1 bill. Enacted in 5 states.
Data center and energy bills in Illinois
The bills not yet law, furthest along first, with what each would do.
2Past committee
21Introduced or inactive
23 bills in scope
Past committee
2
What it would do: Repeals the Messages Tax Act and updates cross-references in various tax acts. Amends tax acts to replace references to alcoholic beverages with alcoholic liquor taxable under the Liquor Control Act, modifies data center investment tax exemptions, and extends hotel room lease taxation to re-renters.
What it would do: Requires State contracts for data storage to process, store, and dispose of State data within the United States. Provides bid credits of 2% for in-state storage and additional 4% for storage in opportunity zones, and awards 10% bonus points for data centers located in-state or in qualified areas.
Introduced or inactive
21
What it would do: Creates the Data Center Energy Accountability Act requiring covered data centers with 5+ megawatts electricity demand to account for hourly consumption and retire eligible environmental attribute certificates equal to 100% of annual State electricity consumption, beginning compliance year 2028, with alternative investment payments for shortfalls deposited into the Electron Accelerator Fund.
What it would do: Allows counties to establish data center construction standards by ordinance, including size, height, design, and number of facilities in geographic areas. Allows municipalities to regulate data center siting within their zoning jurisdiction and 1.5-mile radius, with both requiring public hearings before siting decisions.
What it would do: Authorizes counties and municipalities to establish ordinances regulating data center construction and siting, including standards for size, design, water resources, and noise. Requires at least one public hearing within 30 days before siting decisions and prohibits data centers within 3 miles of another municipality's boundaries without written consent.
What it would do: Requires data center owners to submit water resources plans to the Illinois State Water Survey and prohibits data centers from using Mahomet Aquifer water if likely to cause adverse resource impacts. Mandates quarterly water usage reporting and prohibits nondisclosure agreements restricting disclosure of data center water use information.
What it would do: Prohibits foreign companies (at least 51% foreign-owned or headquartered in a foreign adversary country) from constructing data centers in Illinois unless three state agencies jointly study and certify the data center's energy is self-generated and does not affect PJM or MISO power supply.
What it would do: Requires qualified data center operators to execute community benefit agreements with host communities as a condition of receiving tax exemption certificates, mandating annual minimum payments of at least 10% of property taxes that would have been levied, with at least 50% used for homestead property owner tax relief.
What it would do: Requires data centers operating in Illinois to submit annual water consumption reports to the Department of Natural Resources and energy consumption reports to the Illinois Commerce Commission starting March 31, 2028, with data treated as confidential but aggregated anonymously for public disclosure. Directs the Commission to study data centers' impact on electricity rates and customers.
What it would do: Amends Illinois data center tax incentive law to require water stewardship strategies using closed-loop cooling or treated municipal wastewater, annual reporting on water strategies beginning July 1, 2027, and contractor compliance with responsible bidder requirements and project labor agreements.
What it would do: Establishes a data center self-direct program allowing renewable energy charge reductions and requires data centers to submit disclosures to the Illinois Commerce Commission and annual water usage reports to the Department of Natural Resources, with fines up to $10,000 per violation for non-compliance.
What it would do: Amends the Public Utilities Act to define load-serving entities, reliability backstop procurement, and electric distribution companies, and requires that curtailment obligations and reliability backstop procurement costs from hyperscale data centers be passed through to those facilities rather than other customers.
What it would do: Allows counties to establish ordinances regulating data center construction, siting, and standards including size, height, design, water protection, and noise mitigation. Allows municipalities to regulate data center siting within their zoning jurisdiction and 1.5-mile radius, with prior public hearings required.
What it would do: Requires municipalities to hold a public hearing before approving data center siting applications and subjects such approvals to back-door referendum if 15% of recent general election voters petition within 60 days.
What it would do: Creates the Advanced Technology Leadership Act requiring covered data centers with at least 5 megawatts of information technology load to retire eligible energy attribute certificates equal to escalating percentages of annual State electricity consumption, starting at 70% in 2027 and reaching 100% by 2030, with hourly matching requirements beginning 2030.
What it would do: This resolution urges all data centers in Illinois to provide their own energy and urges the Illinois Power Agency and Environmental Protection Agency to develop a plan to reduce or delay CO2e emissions reductions pursuant to Section 9.15 of the Illinois Environmental Protection Act.
What it would do: Requires all data centers in Illinois to adopt a heat energy reuse plan using air to water heat exchangers to heat nearby homes and businesses. Requires new data centers with 20 megawatts or more aggregate demand load to incorporate liquid cooling systems. Effective January 1, 2027.
What it would do: Creates compensation rights for property owners within 1,000 feet of data centers (5+ megawatts) that cause measurable property value reduction, business revenue loss, or adverse environmental impacts. Compensation equals 1.5 times proven fair market value reduction plus 100% of demonstrated business losses, payable by the data center developer or owner within 90 days.
What it would do: Prohibits electric utilities from requiring security deposits or advance payments from large demand project applicants (over 50 megawatts) who submit interconnection requests under existing tariffs and meet construction requirements. This provision expires September 1, 2026.
What it would do: Creates integrated resource planning requirements for municipal power agencies, municipalities, and electric cooperatives serving over 7,000 customers, requiring plans by January 1, 2027 and every five years thereafter, with stakeholder meetings and public comment periods. Establishes prequalified consulting firm list and amends various utility laws.
What it would do: Expands the data center tax exemption to include quantum research facilities starting January 1, 2026, and creates a new 13% tax credit for qualifying quantum information science research and development expenditures capped at $25,000,000 annually for tax years ending after December 31, 2026.
What it would do: Amends the Illinois Income Tax Act to provide an additional 5% income tax credit for taxable years beginning January 1, 2026, for taxpayers investing in qualified tangible personal property at data centers in opportunity zones or developed by minority-owned, women-owned, or disability-owned businesses, available for 5 taxable years after property placement in service.
What it would do: Requires cryptocurrency mining facilities to apply noise-reduction techniques including liquid cooling, full enclosure, or locating at least 2,000 feet from residential/commercial structures or in industrial zones. The Pollution Control Board shall adopt implementing rules and the EPA shall enforce.
Bill titles link to the Illinois Legislature's own page.
What counts as data center and energy legislation
In scope: Large-load tariffs and cost allocation; siting, zoning and permitting; tax incentives and clawbacks; on-site and co-located generation; water, cooling and emissions; and grid reliability and load flexibility.
Questions
Does Illinois have a data center and energy law?
None of the 23 data center and energy bills in the Illinois Legislature has been enacted in the 2025 and 2026 sessions. 2 bills got past a committee.
Which data center and energy bills are moving in Illinois?
2 bills not yet law have passed a committee or a chamber, the furthest along HB 4786 (passed committee) and HB 3574 (passed chamber).
What does Illinois legislate on most in data center and energy?
Tax incentives and clawbacks (6 bills), Siting, zoning and permitting (5 bills) and Water, cooling and emissions (3 bills).
Are these summaries reviewed by a lawyer?
No. Which bills count as Data center and energy bills, and the line on what each law requires or each bill would do, are drafted by software from the bill's own text and not reviewed by an attorney. Every bill links to the legislature's own record: read the text before relying on it. The list covers bills from the 2025 and 2026 sessions.
Other practice areas in Illinois
- AI in Illinois90
- Alcohol in Illinois32
- Cannabis in Illinois53
- Children's Online Safety in Illinois19
- Cybersecurity in Illinois18
- Data Privacy in Illinois65
- Employment in Illinois163
- Healthcare in Illinois276
- Insurance in Illinois174
- Intellectual Property in Illinois5
- Packaging and PFAS in Illinois26
- Payments and fintech in Illinois18
- Rental housing in Illinois52
- Tobacco and nicotine in Illinois19
- Transportation in Illinois24
- All jurisdictions
Data center and energy legislation in other jurisdictions
49 more currently hold bills in this tracker
- Virginia83
- New Jersey68
- Congress61
- Pennsylvania38
- Michigan35
- West Virginia22
- Maryland21
- New York19
- California16
- South Dakota14
- Minnesota13
- Oklahoma13
- South Carolina13
- Georgia12
- Indiana12
- Iowa11
- Montana11
- Ohio11
- Tennessee11
- Texas11
- Arkansas9
- Arizona9
- Connecticut9
- Idaho9
- Louisiana9
- North Carolina9
- Nebraska8
- Utah8
- Wisconsin8
- Delaware7
- Kentucky7
- Washington7
- Kansas6
- New Hampshire6
- Colorado5
- Florida5
- Missouri5
- Massachusetts4
- North Dakota4
- Rhode Island4
- Vermont4
- Maine3
- Oregon3
- Alaska2
- Alabama2
- Hawaii2
- Mississippi2
- New Mexico2
- Wyoming2
Know when Illinois's data center and energy law changes
An alert when a bill moves, and one report a month on what changed in every state and Congress.