California advances data center water use disclosure legislation
California lawmakers have passed two bills, AB 2469 and AB 2619, that require data center developers to disclose water usage and cover infrastructure costs. These bills are now awaiting Governor Gavin Newsom's signature, who previously vetoed similar legislation. The measures come amidst growing public and bipartisan concern over the environmental impacts and resource consumption of data centers, with local governments in California and across the nation taking action through bans and moratoriums.
California lawmakers have approved two bills, Assembly Bill 2469 and Assembly Bill 2619, aimed at increasing transparency regarding water use by data centers. Authored by Assemblymember Diane Papan of San Mateo, AB 2469 would prohibit local governments from approving new or expanded data centers unless developers disclose their water plans and fund any necessary water infrastructure upgrades. AB 2619, which passed the Senate with a 30-9 vote, mandates data center operators to report their estimated or actual water sources and usage under penalty of perjury when applying for or renewing business licenses or permits.
Both bills are now on Governor Gavin Newsom's desk for signature. Newsom had vetoed a nearly identical bill from Papan last year, citing concerns about imposing rigid reporting requirements without fully understanding the impact on businesses and consumers. However, public sentiment has shifted since then, with a Public Policy Institute of California survey indicating majority opposition to data center construction due to environmental concerns, particularly regarding water and electricity consumption. Environmental groups and community organizations support the bills, while the Data Center Coalition and various local government associations (League of California Cities, California State Association of Counties, Rural County Representatives of California) oppose certain aspects, arguing they single out data centers unfairly or undermine local permitting authority.
Local actions against data centers are also gaining momentum; Monterey Park voters approved a permanent ban in June, and the Coachella City Council followed suit last week. Tulare County is weighing a moratorium, and a recent dispute over a data center in Gilroy, Santa Clara County, garnered national attention. Experts like Iris Stewart-Frey of Santa Clara University and Michael Kiparsky of UC Berkeley emphasize the need for transparency and state guidance for local communities to adequately assess data center impacts. Papan's primary goal with the legislation is to provide essential data for informed decision-making.