The data center backlash is here — and Big Tech is spending big to combat it
Public backlash against data centers in California has led to a push for new legislation to regulate the facilities. Tech companies like Amazon and Anthropic, alongside utility giant Pacific Gas & Electric, are investing heavily in lobbying efforts in Sacramento to combat these bills before they are approved. The issue is becoming a major point for candidates in upcoming elections as AI drives unprecedented data center expansion.
California is experiencing a significant public backlash against the proliferation of data centers, leading to a "flood of legislation" in the state. Seven bills designed to regulate these facilities are currently moving towards approval in the California Legislature, fueled by concerns over the rapid expansion driven by artificial intelligence. This issue is rapidly becoming a major talking point for candidates in upcoming elections across the state.
In response, a coalition of business interests, including prominent tech companies such as Amazon and AI giant Anthropic, are heavily lobbying in Sacramento. They are led in spending by Pacific Gas & Electric, a utility company that recorded its second-largest lobbying quarter since 1999 earlier this year. These groups are actively working to either stop the proposed bills or significantly dilute their regulatory impact.
This current legislative battle follows a similar effort a year prior, where four other bills attempting to regulate data centers were either defeated or weakened due to intense industry lobbying. The ongoing financial push underscores the industry's determination to blunt regulatory efforts amidst a growing public outcry and increased political scrutiny of data center development.