California governor signs broad data center oversight bill package
FILE PHOTO: California Governor Gavin Newsom speaks at the Center for American Progress (CAP) IDEAS Conference at The Mayflower Hotel in Washington, D.C., U.S., May 19, 2026. REUTERS/Annabelle Gordon/File Photo
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Sept 21 : California Governor Gavin Newsom on Monday signed seven bills aimed at regulating the fast-growing data center industry, imposing new requirements on electricity costs, water use and local oversight as communities push back against a surge in AI-linked development.
• The legislation requires data centers to disclose information about 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.
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• 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.
Source: Reuters
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