Newsom Signs New Restrictions on Data Center Development
California Gov. Gavin Newsom has signed new legislation that imposes stricter regulations on data center development across the state. These laws include requirements for new electricity rates to prevent costs from being passed to consumers and mandates for developers to disclose projected water usage. The measures come amid increasing public and local government opposition to data centers.
California Governor Gavin Newsom has signed seven bills into law that will significantly restrict data center development in the state, responding to rising concerns about the facilities' impact on energy and water resources, particularly in the age of artificial intelligence. The new legislation aims to prevent data centers from shifting electricity costs to other ratepayers and requires developers to disclose their projected water usage.
Key among the signed bills are Senate Bill 886 and Assembly Bill 2383, which direct the California Public Utilities Commission to establish specific power rates for data centers to cover grid connection and electricity supply costs. Senator Steve Padilla, who authored SB 886, highlighted these as