SB 4016, the POWER Act, would impose statewide guardrails on Illinois data centers, including energy planning, water-use disclosure and limits on secrecy deals with local governments.
Ram Villivalam said the bill responds to rising utility costs, community demands for transparency and concerns that heavy data-center demand could threaten drinking water and other natural resources.
The measure would require operators to file energy supply and capacity plans tied to new renewable generation and battery storage, and to report expected and actual water withdrawals, use and discharge.
It also would create a state-administered fund for environmental rehabilitation, preservation and utility-bill assistance, aiming to shift more costs from communities to data-center operators.
Hundreds of environmental advocates rallied in Springfield behind the proposal, which Villivalam called the nation's most comprehensive data-center bill and which now awaits committee assignment.
With Illinois's data center bill stalled, what's stopping a massive resource rush before new regulations pass?
As data centers demand town-sized amounts of water, is Illinois prepared for a future of water scarcity?
Regulating the AI Boom: Illinois’ POWER Act and the Future of Data Centers, Energy, and Water
Overview
Illinois is responding to the rapid growth of hyperscale data centers by proposing the Protecting Our Water, Environment, and Residents (POWER) Act. This legislation, introduced in both the Senate and House, aims to create a stronger regulatory framework for data center operations. A key feature is the establishment of a dedicated fund, financed by data center developers, to help local communities monitor and address environmental and community impacts. As of June 2026, the POWER Act and related bills are under review in legislative committees, marking a significant step toward balancing economic growth with community and environmental protection.