Big Tech Spending Big to Battle Data Center Backlash
Big Tech and utility companies are spending millions lobbying the California Legislature to oppose or weaken seven bills aimed at regulating data centers due to public backlash over utility costs, water use, and grid strain. Despite lobbying efforts, polls show strong public opposition, leading to project bans in cities like Monterey Park and a new data center framework in San Jose.
Big Tech companies, including Amazon and AI titan Anthropic, along with utility giants like Pacific Gas & Electric (PG&E) and Southern California Edison, are extensively lobbying the California Legislature to combat seven proposed bills that would regulate data centers. These companies have spent millions, hoping to prevent or dilute the legislation, which addresses rising public concerns over utility costs, water usage, and strain on the electricity grid exacerbated by the rapid expansion of AI-driven data centers.
The lobbying efforts come amidst significant public backlash, with recent polls indicating strong opposition to data center construction in communities across California and the nation. This sentiment has led to concrete actions at the local level, with hundreds of cities considering or passing project bans, such as Monterey Park's ballot measure to permanently ban data centers and Pittsburg's decision to backtrack on previous approvals following public outcry.
Despite the statewide legislative battle, some local governments are actively pursuing data center development. San Jose Mayor Matt Mahan has positioned the city as a major hub for data centers, announcing a historic agreement with PG&E for energy upgrades and presiding over a Microsoft data center groundbreaking in Alviso. San Jose is now developing its own data center framework, inviting residents to help define responsible development standards.
Advocates for the bills emphasize the need for transparency and protection of public resources, arguing that the costs of infrastructure upgrades for data centers should not burden everyday consumers. The outcome of these legislative measures, expected to be decided by September, could set a precedent for data center regulation across the U.S., influencing environmental policies and the operational freedom of tech giants in California.