Counties oppose ICE facility near Gilroy, data centers don't report water use

Counties oppose ICE facility near Gilroy, data centers don't report water use

News Clip90.3 KAZU·Gilroy, Santa Clara County, CA·5/22/2026

A new report reveals that data center operators in California are using loopholes to avoid reporting their water usage, particularly in water-stressed areas like Gilroy. In response, two state bills have been introduced to mandate disclosure of water use and increase oversight on data center development.

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Gov: Monterey County Board of Supervisors, Santa Cruz County Board of Supervisors, California State Legislature, San Mateo Assemblymember Diane Papan, Immigration and Customs Enforcement, Santa Cruz County Sheriff's office

A report from Santa Clara University and the think tank Next10 indicates that data center operators in California are circumventing disclosure requirements for their water consumption. The report highlights that these facilities frequently avoid extensive environmental review by staying below specific size or water-use thresholds, a practice particularly concerning in water-stressed communities such as Gilroy.

In response to these findings, San Mateo Assemblymember Diane Papan has introduced two bills in the California State Legislature. These proposed legislative measures aim to introduce greater oversight, with one bill specifically mandating that data center operators disclose their water usage when applying for or renewing business licenses. Papan emphasized the critical need for thorough review before introducing significant new water demand into water-scarce regions.