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States Push Data Center Guardrails as Illinois and Colorado Unveil Clean‑Power, Cost‑Sharing Bills

Proposals target shifting grid costs to developers, with some bills requiring long contracts or clean power commitments.

Overview

  • Illinois’ POWER Act (SB4016/HB5513), backed by the Illinois Clean Jobs Coalition and sponsored by Sen. Ram Villivalam and Rep. Robyn Gabel, would require data centers to file clean energy plans and supply at least 80% of noninterruptible power from renewables, batteries or demand reduction while blocking cost shifts to ratepayers.
  • Industry groups warn the Illinois measure could effectively close the state’s market for new facilities, with the Data Center Coalition’s Brad Tietz criticizing the 638‑page bill as unworkable, while consumer advocates argue the plan is needed to curb rising bills tied to large‑load growth.
  • Colorado lawmakers introduced a bill to require large data centers to cover annual electricity use with renewables starting in 2031 and to sign 15‑year utility agreements to fund necessary grid upgrades, with reporting on energy and water use and a competing incentive bill under negotiation.
  • Nebraska’s LB1111 received a hearing that would mandate facilities of 20 megawatts or more to pay for new electrical infrastructure, bar utilities from passing related costs to other customers and require annual power‑use reporting, drawing mixed responses from local power officials.
  • Community pressure and broader policy moves are mounting, with Wisconsin activists calling for a moratorium and rate protections, Florida debate over a records‑exemption bill criticized for secrecy, and national reporting highlighting bipartisan calls—including from President Donald Trump—for data centers to “pay their own way,” alongside a reported Hawley–Blumenthal proposal to require the largest sites to secure dedicated power.