Proposition 45 Could Redefine California’s Data Center Battle
California Proposition 45 would streamline environmental reviews for housing and infrastructure, but critics warn its broad language could also benefit data centers and override recently adopted state protections and local moratoriums. Supporters, including the Data Center Coalition and the Yes on 45 campaign, deny that data centers would qualify for the expedited process.
California voters are set to decide Proposition 45, an initiative marketed as a way to accelerate permitting for housing, schools, roads and other infrastructure. Legal scholars and environmental groups argue that its references to telecommunications and related infrastructure could allow data centers to receive streamlined environmental review, potentially weakening Senate Bill 887 and local bans or moratoriums adopted over concerns about water consumption, electricity demand and noise.
The Data Center Coalition and Yes on 45 campaign reject that interpretation, citing a legal opinion from the California Office of Legislative Counsel that says data centers are not covered. The dispute comes after Gov. Gavin Newsom signed seven laws imposing new data center requirements, including water-use disclosures, payment for grid upgrades and environmental review. Opponents warn that Prop. 45 could trigger costly litigation over state and local permitting authority, while campaign financing from PG&E and Prologis has drawn additional scrutiny.