Key facts
- Seven bills regulating the data center industry were signed by California Governor Gavin Newsom on Monday.
- The legislation requires data centers to disclose information on electricity use, water consumption, land use, and workforce needs.
- Measures aim to prevent data center costs from being shifted to other ratepayers.
- New laws require data centers to comply with state energy procurement requirements and add clean energy to the grid.
- Legislation addresses concerns over data centers' impact on electricity demand, water resources, and local infrastructure.
California Governor Gavin Newsom signed seven bills on Monday aimed at regulating the fast-growing data center industry. The legislation imposes new requirements on electricity costs, water use, and local oversight, as communities push back against a surge in AI-linked development.
The bills require data centers to disclose information about their electricity use, water consumption, land use, and workforce needs, while giving local communities more information to assess proposed projects. The measures are designed to prevent the cost of new power generation and grid upgrades needed for data centers from being shifted onto other ratepayers.
"With these laws, we are ensuring that Californians remain in the driver’s seat — and that those profiting from data centers aren’t doing so at our expense," Newsom said in a statement. California said the legislation will require data centers to comply with the state's energy procurement requirements and help bring new clean-energy supplies onto the grid.
The measures come amid growing concern nationwide over the impact of data centers on electricity demand, water resources, and local infrastructure as technology companies race to expand artificial intelligence capabilities. The rapid expansion of AI data centers has sparked resistance in California and elsewhere, with residents and advocacy groups raising concerns about electricity bills and pollution associated with the facilities.
The Data Center Coalition, an industry trade group, was not immediately available for comment. The group has said previously that the bills unfairly single out data centers rather than other large industrial and commercial electricity users, and warned the measures could push projects to other states.