California Lawmakers Pass Data Center Water Disclosure Bills to Governor's Desk
Two California bills, AB 2469 and AB 2619, requiring data center developers to disclose water usage and cover infrastructure costs, have passed the legislature and await Governor Newsom's signature. These bills are a response to growing public and local government concerns over data centers' environmental impact, particularly water and electricity consumption. Several California cities and counties have already enacted or are considering local moratoriums and bans on data center development.
California lawmakers have advanced two significant bills, Assembly Bill 2469 and Assembly Bill 2619, to Governor Gavin Newsom's desk, addressing the water consumption of data centers. Authored by Assemblymember Diane Papan of San Mateo, AB 2469 would prohibit local governments from approving new or expanded data centers unless developers disclose their water plans and fund any necessary water infrastructure upgrades. AB 2619, approved by state senators, mandates data center operators to report their estimated or actual water use under penalty of perjury when applying for or renewing business licenses or permits.
These legislative efforts follow Governor Newsom's veto of a similar bill last year, which he cited as imposing "rigid reporting requirements" without understanding the full impact on businesses. However, public sentiment has shifted, with growing bipartisan opposition to data centers due to concerns over water, electricity, and the environmental footprint of artificial intelligence. A Public Policy Institute of California survey revealed majority opposition to data center construction in local areas, and Santa Clara University professor Iris Stewart-Frey highlighted the lack of transparency in the industry's water usage.
Local governments across California, facing "little oversight and even less state direction," are increasingly implementing their own restrictions. Monterey Park voters approved a permanent ban in June, the Coachella City Council enacted a ban, and the Tulare County Board of Supervisors is considering moratoriums. The Data Center Coalition, an industry trade association, opposes the bills, arguing they unfairly target data centers compared to other commercial and industrial water users. Additionally, organizations like the League of California Cities and the California State Association of Counties oppose AB 2469, stating it undermines local government autonomy in permitting processes. The Santa Clara Valley Water District, however, supports the bills, emphasizing the need for more data to plan for actual water needs.