Illinois Legislative News: April 13, 2026
Third Reading Consulting Group
Data centers have become the backbone of the modern digital economy, powering growing demand for AI, cloud computing, e-commerce, and data storage. This rapid expansion has made the data center industry one of the fastest-growing sectors in the global economy, with Illinois positioned as a national leader alongside states such as Texas, Virginia, California, Wisconsin, and Indiana. While these facilities can bring transformative investment to surrounding communities, they also raise questions about energy and water consumption, sustainability, and regulation. A lack of clarity in the state’s Biometric Information Privacy Act (BIPA) has also hindered Illinois’ ability to recruit large-scale projects in recent years due to concerns over costly litigation.
Also affecting Illinois’ competitiveness is Gov. JB Pritzker’s proposal, outlined in his February State of the State and FY 2027 Budget Address, to pause the Data Center Investment Tax Incentive for two years. The pause would apply only to new projects and has received little consideration from the General Assembly so far. Business interests view it as removing a valuable economic development tool, while environmental stakeholders argue it could be beneficial, citing concerns about the unchecked proliferation of data centers straining the state’s energy and water supplies.
General Assembly Subject Matter Hearings
In response to these and other concerns, both the House and Senate began a series of subject matter hearings this week to hear from stakeholders and discuss data center issues.
On Wednesday, April 8, the House Executive Committee held a subject matter hearing on data center local impacts, bringing together representatives from local government, organized labor, and agriculture. Local government officials highlighted economic benefits such as property tax revenue while calling for greater transparency and state limits on water use and noise. Labor groups, particularly in construction, argued that data centers represent an investment opportunity Illinois cannot afford to lose, while acknowledging the need for smart standards to ensure long-term industry sustainability. The Illinois Farm Bureau expressed concern about data centers consuming tillable land and water otherwise dedicated to agriculture, noting openness to a “bring your own energy” model provided new generation capacity does not further encroach on farmland.
Following an extensive hearing on Thursday, April 9, the Senate Executive – AI and Social Media Subcommittee plans to continue the data center discussion on the afternoon of Friday, April 10. Thursday’s hearing focused on consumer protection and privacy regulation of AI companies. Friday’s hearing will focus on data centers, workforce related-issues, youth safety, and youth education.
The House Executive Committee will continue its data center hearings on Wednesday, April 15, focusing on energy use, and Wednesday, April 22, focusing on water use. These hearings may result in omnibus legislation before the end of May, during fall veto session, or in the coming years. AI and data center issues will continue to be key legislative topics for years to come.
Important Upcoming Dates – Statewide
April 17 – Initial Chamber Third Reading Deadline
May 8 – Opposite Chamber Committee Deadline
May 22 – Opposite Chamber Third Reading Deadline
May 31 – Adjournment
November 3 – Illinois General Election