New California law requires environmental analysis before data centers can be built
California has enacted a new law, SB 887, requiring all new data center projects to undergo environmental impact reviews under the California Environmental Quality Act (CEQA). This legislation was largely spurred by community opposition to a proposed data center in Imperial County that attempted to bypass environmental review. The law is part of a broader legislative package aimed at regulating the data center industry in the state.
California Governor Gavin Newsom has signed Senate Bill 887 into law, mandating that all new data center projects in the state undergo environmental impact reviews as per the California Environmental Quality Act (CEQA). This legislation is one of seven new regulations approved by Newsom aimed at the data center industry, which he described as "the most comprehensive data center protections in America." Other bills require data centers to pay for electrical infrastructure and contribute to wildfire prevention.
State Senator Steve Padilla introduced SB 887, partly in response to public opposition to a large data center complex planned for the Imperial Valley. The project's developer, Sebastian Rucci, had attempted to bypass environmental review by designing the project to align with local zoning codes, classifying it as a "ministerial" project. Padilla, whose district includes the Imperial Valley, argued against allowing the project without public input and stated the new laws would make "Big Tech" promises legally enforceable.
The bill received support from numerous environmental and consumer advocacy groups, as well as Imperial Valley organizations like the Brawley Chamber of Commerce and the Heber Public Utility District. Conversely, industry groups, including the Silicon Valley Leadership Group and the Data Center Coalition, opposed the bill, claiming it unfairly singled out their sector and would deter developers from California.
SB 887 specifically clarifies that all new data centers are subject to CEQA, closing the "ministerial" project loophole. While the law offers a streamlined construction path for developers who commit to strict environmental standards like switching to renewable energy within five years, using water-efficient cooling systems, and signing local community benefit agreements, industry representatives have called these requirements "virtually impossible." The City of Imperial previously sued county officials over Rucci's project, with a judge ruling that the project was not ministerial.