California and the EU tighten oversight of data center resource consumption — OilPrice
California Governor Gavin Newsom has signed seven new laws to increase oversight of data centers' water and energy consumption, requiring developers to assess future resource use and finance grid upgrades. Concurrently, the European Commission has introduced new transparency requirements for data centers to report their electricity and water usage. These measures aim to address the environmental impact of the growing data center infrastructure, particularly with the expansion of artificial intelligence.
California Governor Gavin Newsom has enacted a package of seven laws aimed at tightening oversight on data centers' resource consumption. The new legislation mandates that developers of new data centers in California must assess their future water use, submit energy-efficiency data, and include measures for drought preparedness. Furthermore, projects will need to meet specific requirements for energy, water, and fuel consumption to gain official approval. Data center developers will also be required to finance upgrades to local power grids in the communities where their facilities are built. Newsom stated that these rules are designed to prevent local communities from bearing the burden of increased electricity demand, grid strain, water use, and pollution associated with data center expansion.
In parallel, the European Commission has introduced new requirements for data centers operating within the EU. These rules will compel companies to report their electricity and water usage, as well as provide information on the relationship between their water consumption and regional water stress levels. While these European regulations do not impose specific limits on resource use, they are intended to enhance transparency regarding data centers' environmental impact. The EU plans to significantly expand its data center capacity over the next seven years to bolster technological independence and competitiveness in artificial intelligence.
The new regulations in both California and the EU are a direct response to growing concerns over the environmental footprint of the rapidly expanding data center sector, particularly with the surge in artificial intelligence development. A United Nations University study projects that by the end of the decade, AI could consume as much water as 1.3 billion people in sub-Saharan Africa, and its energy consumption could triple that of Pakistan, Bangladesh, and Nigeria combined. Professor Kaveh Madani, head of the research group, emphasized the importance of responsibly addressing these unintended consequences to ensure sustainable and equitable technological development.