Nation-leading data center regulations signed into law
California Governor Gavin Newsom has signed Senate Bills 886 and 887 into law, establishing robust regulations for data centers across the state. These new laws aim to protect ratepayers from electricity and grid costs associated with data centers and mandate environmental reviews and community input for all new projects. The legislation is considered among the nation's strongest for holding tech companies accountable.
California Governor Gavin Newsom has enacted Senate Bills 886 and 887, authored by State Senator Steve Padilla (D-San Diego), creating what are touted as the nation's strongest regulations for data centers. The legislative package, which also includes Assembly Bill 2383 by Assemblymember Zbur, focuses on protecting ratepayers and the environment from the impacts of data center development.
Key provisions ensure that data centers bear their own electricity and grid infrastructure costs, preventing these expenses from being passed on to other California consumers. The laws also mandate comprehensive environmental reviews for all data center projects, safeguarding local air and water quality, and guarantee that local communities have a voice in the approval process.
Senator Padilla emphasized that these laws make legally enforceable the promises of "Big Tech" to be good neighbors, contrasting with a recent Trump Administration announcement to potentially reduce public input requirements for new data centers. The legislation received strong support in both the Senate (28-10 for SB 886, 30-8 for SB 887) and the Assembly (62-7 for SB 886, 59-11 for SB 887).
Advocacy groups like TURN—The Utility Reform Network and Net Zero California lauded the new laws. Mark W. Toney, Executive Director at TURN, highlighted the protection of ratepayers from subsidizing data center energy consumption, while Sam Uden, Co-Founder of Net Zero California, praised California policymakers for addressing data center-driven load growth without resorting to moratoriums, instead opting for robust protections and opportunities for grid strengthening.