Key facts
- California's planned and under-construction data centers are expected to grow the state's capacity by 24 percent.
- Over two-thirds of California voters oppose new data centers in their communities.
- Monterey Park has become the first city to permanently ban data centers.
- A national coalition opposing data centers has launched, including more than two dozen California groups.
- Governor Newsom's office asserts California has regulatory safeguards for upcoming data center demand.
California is preparing for a significant increase in data center capacity, with planned and under-construction facilities expected to grow the state's stock by 24 percent. However, this expansion faces growing opposition from local communities and environmental groups, with over two-thirds of California voters reportedly opposing new data centers in their areas. Monterey Park has already become the first city to enact a permanent ban.
Despite the rising concerns, Governor Gavin Newsom's administration maintains that California has robust planning frameworks and regulatory safeguards to manage the impending demand spike without unfairly burdening customers or increasing utility bills. This contrasts with states like Pennsylvania, Maryland, and Illinois, which are projected to see much higher percentage increases in data center capacity.
Analysts suggest that a lack of a signature AI or data center policy from the governor may be contributing to the issue, as AI, while climbing in importance, still ranks below other voter concerns. The tech sector has also clashed with the governor on other policy fronts, such as a proposed software sales tax expansion.