Illinois bill targets data center energy costs, AI infrastructure expansion

Melissa Palmer

February 12, 2026

Illinois lawmakers are pushing the POWER Act to put tighter rules around data centers’ energy and water use.

The core idea is to shift rising power costs from ratepayers to data center operators, which directly hits AI GPU farm economics.

Any new AI-capable data center build in Illinois will face more scrutiny on power sourcing, efficiency, and water sustainability.

This could slow some hyperscale and colocation expansion or at least force them to price in regulatory and utility risk more carefully.

Vendors selling GPU systems into Illinois will need to align with stricter efficiency and cooling expectations to stay competitive.

If passed, the bill becomes another data point in the broader trend of states pushing back on unchecked AI infrastructure growth.

Worth reading in full for anyone siting AI workloads or data centers in the Midwest, given the policy signal it sends.

Source: Illinois lawmakers propose POWER Act bill to regulate data centers – ABC7 Chicago

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