Who Pays for AI’s Power? California Watchdog Urges New Data Center Rules

Who Pays for AI’s Power? California Watchdog Urges New Data Center Rules

News Clipedhat·CA·3/12/2026

A California watchdog group, the Little Hoover Commission, released a report urging state policymakers to address the growing electricity demands and environmental impact of the state's rapidly expanding data center industry. The report calls for requiring data centers to pay the full cost of grid infrastructure and services they use, tracking their energy and water usage, and limiting pollution from backup generators.

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Gov: Little Hoover Commission, California Legislature, Assembly Energy and Utilities Committee
A California watchdog released a report Tuesday urging policymakers to act fast on the state’s fast-growing data-center industry