PEORIA (25News Now) -As Illinois braces for a surge in electricity demand tied to artificial intelligence and the rapid expansion of data centers, a new report from the Union of Concerned Scientists is urging state lawmakers to act quickly to protect ratepayers, public health and the state’s clean energy goals.
The nonprofit science advocacy organization released its analysis Wednesday morning, warning that under current state and federal policies, the growing electricity demand driven by data centers could increase pollution from coal and natural gas plants in Illinois while forcing the state to rely more heavily on power generated in other states.
The report, titled Data Center Power Play, examines how Illinois’ power grid could be affected over the next 25 years as data centers expand to support AI technologies, cloud computing and digital infrastructure.
Illinois Economic Cost
James Gignac, Midwest Policy Director for the Union of Concerned Scientists, said the findings represent an urgent call to action for state policymakers.
“Our power grid modeling shows that under current state and federal policies, the increasing electricity demand from data centers will tend to increase pollution from coal and gas plants in Illinois and rapidly escalate the state’s reliance on power plants in other states,” Gignac said.
According to the analysis, from 2026 to 2050, data center load growth could increase electricity system costs in Illinois by an estimated $24 billion to $37 billion if stronger ratepayer protections are not put in place.
The report also projects that data centers could account for up to 64 percent of electricity demand growth in Illinois by 2030 in a mid-level growth scenario, with demand continuing to rise sharply by 2035 from ‘electrification of other sectors.’
Gignac said those costs could ultimately be passed on to households other rate payers unless new safeguards are adopted.
“We found that data centers could be responsible for billions of dollars in electricity system costs in the coming decades,” he said. “So it’s really essential that we have state protections in place to avoid other ratepayers shouldering that cost.”
To prevent that outcome, the Union of Concerned Scientists is calling on Illinois lawmakers to require new data centers to secure their own sources of new, carbon-free electricity and to pay the costs associated with connecting to the power grid, rather than shifting those expenses onto existing customers.
Broader Economic Cost and Transparency
The study also outlines the broader financial impact of data center-driven electricity demand nationwide.
Researchers estimate that wholesale electricity costs attributable to data center growth could range from $411 billion to $524 billion from 2026 to 2035, and between $886 billion and $978 billion from 2026 to 2050.
However, the report notes that restoring and strengthening federal clean energy tax credits could significantly reduce those costs.
Under that scenario, wholesale electricity costs could drop to about $202 billion between 2026 and 2035, while still meeting growing demand.
Beyond the economic impacts, the analysis highlights growing concern among communities across the country, including in Illinois, over how quickly data centers are being developed and how little information residents often receive during the approval process.
“We’re seeing communities across the country becoming increasingly concerned about the speed and lack of transparency around data center development,” Gignac said.
“Policies like the ones we’re recommending can provide additional clarity to communities and individuals, create a more level playing field for developers, and protect customers from increased costs while safeguarding Illinois’ clean energy goals,” he continued.
Health Costs
The report also emphasizes the public health and environmental consequences of increased reliance on fossil fuel power plants. Researchers found that higher electricity demand from data centers could lead to increased emissions from Illinois coal and gas plants, which they were able to quantify in terms of health impacts.
One of the findings shows that increased electricity demand is linked to higher rates of respiratory and cardiovascular conditions, premature deaths and additional climate damages resulting from increased emissions.
According to the study, replacing electricity generation from fossil fuel combustion with clean electricity resources “decreases emissions of the harmful air pollutants, such as nitrogen oxides (NOx) and sulfur dioxide (SO2), that contribute to respiratory ailments, heart attacks, other illnesses, and even mortalities.”
At the same time, the report argues that Illinois is well-positioned to meet rising demand in a cleaner and more affordable way if policymakers act now. By pairing data center growth with expanded clean energy development, the state could see up to $2.8 billion in health savings and avoid an estimated $112 billion in global climate damages by 2050.
“As the AI boom is already reshaping the energy landscape, modernized policies specific to data centers are urgently needed to protect Illinois’ clean energy future and its electricity ratepayers,” Gignac said.
“Without taking steps like requiring data centers to pay for building new renewable energy sources rather than gas plants, their electricity demand will increase pollution and dramatically escalate Illinois’ reliance on imported power,” he continued.
The full report and its policy recommendations are available on the Union of Concerned Scientists’ website.
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