California Should Require Data Centers to Fund Community Benefits, Contributor Says

California Should Require Data Centers to Fund Community Benefits, Contributor Says

News ClipLos Angeles Times·CA·10/13/2026

The opinion article argues that California should require data center developers to cover the infrastructure and environmental costs of their projects and provide enforceable benefits to host communities. It cites seven laws signed by Gov. Gavin Newsom that address electricity, water use, environmental review and ratepayer protections, while calling for an additional statewide community benefit standard.

governmentelectricitywaterenvironmental
Gov: State of California, California Public Utilities Commission, California Legislature, Office of the Governor of California

Former California state Sen. Dean Florez argues that data centers should be treated like cities because of their substantial demands on electricity, water and infrastructure. He says California's recently enacted laws, signed by Gov. Gavin Newsom, require greater disclosure of power and water needs, establish utility cost responsibilities, impose water planning requirements and limit broad environmental exemptions.

Florez supports an additional community benefit standard for every new data center and major expansion. He proposes enforceable agreements requiring projects to fund locally selected technology programs, such as water reuse, research computing for hospitals and universities, or resilient backup power for public facilities, while emphasizing that projects with unacceptable environmental impacts should be rejected or relocated.