California Governor Gavin Newsom signed seven bills on Monday that will give state and local officials greater authority to regulate data centers concerning their energy consumption, water usage, and land use. This marks a significant shift from his previous stance, as he had rejected a similar water consumption reporting bill last year. Newsom, however, promoted the new legislation as "the most comprehensive data center protections in America."
This claim of being "nation-leading" is contested. Virginia Governor Abigail Spanberger recently described her state's data center development rules as the "most comprehensive" framework, and New York Governor Kathy Hochul previously called her state's moratorium on new hyperscale data center construction "nation-leading."
Mitch Jones, managing director of policy at Food & Water Watch, criticized Newsom's claims as "spin," arguing that California is simply catching up to industry standards and other political figures. The competition among politicians to address data center regulation highlights the growing political importance of the issue, as public opinion increasingly views these facilities as detrimental to communities due to their high energy and water demands, despite industry efforts to promote sustainability and economic benefits.
Newsom, who has historically been an ally of Silicon Valley and previously expressed a more relaxed attitude towards data center controls, appears to be pivoting his position to avoid public backlash. Mark Toney, executive director of The Utility Reform Network, noted increased urgency from Newsom's office this year regarding data center regulation, contrasting it with the previous year when California was perceived as potentially falling behind in addressing the issue.