Bloomington and Normal Convene Data Center Power Debate

Key Takeaways

Illinois has more than 240 data centers, with hyperscale AI facilities increasing pressure on regional electricity supplies.
Utilities and consumer advocates disagree over how grid expansion costs should be divided between data center operators and other customers.
The proposed Power Act would require developers to fund grid upgrades and bring new renewable capacity.

Illinois built its data center appeal on relatively inexpensive Midwestern electricity, a stable grid and limited regulation. That formula helped attract more than 240 facilities, most of them smaller sites around Chicago. Now the arrival of hyperscale projects supporting artificial intelligence is changing the calculation. Bloomington and Normal will bring industry representatives, government officials and community members together Wednesday from 5 to 8 p.m. at the Bloomington Center for the Performing Arts to examine whether the area has enough power for such development.

The scale is hard to ignore. A large data center can consume enough electricity to power about 100,000 homes. Meanwhile, the IEA reported that global data center electricity consumption reached about 485 TWh in 2025, up 17% year over year, and could approach 950 TWh by 2030. AI-focused sites are growing faster still. For developers evaluating Central Illinois, access to land may be the easy part. Securing dependable power, transmission access and favorable commercial terms is becoming the real site-selection test.

Customers already feel pressure. The Citizens Utility Board says Illinois power prices are close to 50% higher than two years ago, although data centers are only one contributor. Electric vehicles and broader electrification are also lifting demand. The executive director of the Ecology Action Center in Normal reported that hyperscale data center growth in the region has increased at a 43% clip over five years. Because the Midcontinent Independent System Operator, or MISO, coordinates the grid across much of Illinois and 14 other Midwest states, costs associated with expansion can travel far beyond the host community.

A data center does not have to be nearby to affect a customer's bill. MISO expects load growth at rates "not seen in decades," with data centers projected to consume one-fifth of all electricity by 2030 and one-fourth by 2040. An Axis Intelligence tracker likewise describes grid capacity and power availability as major constraints on data center growth. Who pays to relieve those constraints is quickly becoming as important as how much new generation gets built.

Ameren Illinois, which distributes electricity across much of Central and Southern Illinois, is working on a 380-mile transmission project crossing McLean County. It is also building three substations and upgrading several others. Ameren is seeking regulatory approval for $65.3 million in rate increases to recover some costs, while the Citizens Utility Board is challenging the request over alleged wasteful spending and poor planning (source). Ameren says it evaluates data center proposals individually and invests to preserve reliability for all customers.

Getting a project approved remains difficult. The president and CEO of Wabash Valley Power Alliance said the nonprofit has received close to 70 inquiries from data center developers, including potential projects in Corn Belt Energy territory. It has contracted to supply only one project, under development in Lebanon, Indiana. The executive noted that an agreement can benefit other customers when the developer covers expansion expenses and pays additional fees. But if capacity is tight or costs could spill over to members, the economics change quickly.

Efficiency inside the facility matters too. Uptime Institute's 2025 survey put average Power Usage Effectiveness at 1.54 for a sixth consecutive year. That lack of progress means cooling, power conversion and other overhead continue consuming substantial electricity beyond the servers themselves. Legacy air-cooled facilities often operate around PUE 1.55 to 1.67, while liquid cooling can reduce overhead. For Bloomington-Normal, efficiency requirements could become part of any development agreement, alongside power sourcing and infrastructure payments.

The policy dispute is now centered on the Power Act. Backed by the Illinois Environmental Council and the Citizens Utility Board, its BEYONCCE provision, short for Bring Your Own New Clean Capacity and Energy, would require data center operators to pay for required upgrades and supply new renewable capacity. That is a demanding proposition while PJM faces three-to-five-year connection delays for green energy projects and Illinois works toward eliminating coal and natural gas generation by 2045. Still, the forum gives Bloomington and Normal an early opportunity to set expectations before a hyperscale proposal arrives, rather than negotiating after the grid is already strained.

Editorial oversight by Rich Tehrani — CEO of TMC and creator of ITEXPO.

Disclosure: Rich Tehrani is also CEO of RT Advisors and a Registered Representative offering securities through Four Points Capital Partners LLC (Member FINRA/SIPC). Nothing in this article is an endorsement or recommendation to buy or sell any security or sector mentioned. RT Advisors may have or have had business relationships with companies mentioned in TMC Insight articles. Such relationships do not affect editorial judgment or coverage.