DATA CENTERS-FOREIGN OWNERSHIP

104th Regular Session Introduced by Darby Hills and 2 co-sponsors

Prohibits data centers in Illinois built by foreign-owned companies unless a state study certifies the center’s energy use is self-generated and won’t affect PJM or MISO load.

Summary of SB3578 (104th General Assembly, Illinois)

Purpose and intent

Establishes the Data Center Construction by Foreign Adversaries Act.

Aims to restrict the construction of data centers in Illinois by “foreign companies” and requires a state-level energy review before any such projects proceed.

Key provisions (what the bill would change)

Prohibition on foreign-backed data centers:

After the act’s effective date, no foreign company may construct or cause to be constructed a data center in Illinois.

Definition of foreign company:

A company that is at least 51% owned by a foreign adversary (per 15 CFR 791.2) or is headquartered in a country with a government that is a foreign adversary (per 15 CFR 791.2).

Definitions of terms:

“Data center” is defined as in Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois.
“MISO” means the Midcontinent Independent System Operator, Inc.
“PJM” means PJM Interconnection, LLC.
“Company” broad enough to include entities and their wholly-owned or majority-owned subsidiaries, parent companies, and affiliates.

Energy study and certification requirement:

Before a foreign company can construct a data center, the Illinois Commerce Commission (ICC), Illinois Power Agency (IPA), and the Department of Commerce and Economic Opportunity (DCEO) must conduct a joint study of the prospective data center’s energy consumption.
They must certify to the Governor and the General Assembly that the data center’s energy use is a self-generated load and does not affect the load supply of PJM or MISO.

Who and what would be affected

Affects any prospective data center project in Illinois initiated by a foreign company meeting the bill’s definition.

Governing bodies involved in review:

Illinois Commerce Commission (ICC)
Illinois Power Agency (IPA)
Department of Commerce and Economic Opportunity (DCEO)

Broader stakeholders potentially impacted include:

Data center developers and investors with foreign ownership or connections
Utilities and regional transmission organizations (PJM and MISO) insofar as they assess grid impact
State policymakers evaluating energy load, reliability, and economic development

Procedural and timeline aspects

Effective date: The act would apply after its effective date, requiring the joint study and certification prior to any foreign-company-initiated construction.

Certification outcome: The process results in a certification that the planned data center’s energy use is a new self-generated load and does not alter PJM or MISO load supply, which is a prerequisite to proceeding.

Legislative process status:

Introduced February 5, 2026 by Sen. Sue Rezin
Co-sponsors include Sen. Sally Turner
Assigned and under consideration within the 104th General Assembly

Observations

The bill centers on national security and energy grid considerations by limiting foreign ownership in critical infrastructure (data centers) and tying approval to verifiable, self-generated energy load that does not disrupt regional grid supply.

The requirements involve interagency coordination and technical verification of energy impact before authorization.