California lawmakers push data centers to pay more for energy costs
California lawmakers are advancing legislation to require data centers to cover more of their energy costs and grid upgrades, rather than shifting them to ratepayers. Bills from Senator Steve Padilla and Assemblymember Rebecca Bauer-Kahan also aim to increase transparency on energy and water consumption. These proposals are currently on Governor Gavin Newsom's desk, with a decision deadline at the end of September.
California lawmakers are pushing for new legislation aimed at increasing the energy cost burden on data centers and enhancing transparency regarding their energy and water consumption. A recent Public Policy Institute of California survey revealed significant public opposition to data center construction, largely due to environmental concerns, prompting lawmakers to act.
State Senator Steve Padilla is advocating for requirements that data centers bear the full costs associated with their electricity usage, including expensive grid upgrades identified by the California Independent Systems Operator, to prevent these expenses from being passed on to California ratepayers. Assemblymember Rebecca Bauer-Kahan has introduced a bill mandating existing data centers to report monthly energy consumption and requiring proposed facilities to disclose expected energy use during the permitting process, alongside efforts for water usage disclosure.
The proposed legislation, now awaiting Governor Gavin Newsom's decision by the end of September, has generated mixed reactions. While proponents emphasize the need for accountability and to protect communities and ratepayers, some Republicans, like Assembly Member Josh Hoover, express concerns about potential overregulation that could stifle innovation, particularly in emerging areas like artificial intelligence.