California Enacts Laws Shifting Data Center Costs and Expanding Environmental Oversight
California Gov. Gavin Newsom signed seven laws requiring data center operators to bear more electric infrastructure costs, disclose water and other resource use, and comply with environmental review requirements. The package responds to growing public opposition and shifts California policy away from a more permissive approach to data center development.
Gov. Gavin Newsom signed a package of seven California laws targeting the costs and environmental impacts of data center development. Three laws shift electric infrastructure expenses from residential customers to data center operators, three require disclosures of water and other resource use, and another removes data centers’ eligibility for certain environmental review exemptions.
Newsom said the measures would protect Californians while allowing innovation to continue, contrasting California’s regulatory approach with President Donald Trump’s efforts to accelerate data center and artificial intelligence development nationwide. The article frames the legislation as a response to rising public backlash against the industry.