Inside a California data center as communities raise concerns about energy costs amid the AI boom

Inside a California data center as communities raise concerns about energy costs amid the AI boom

News ClipCBS News·Irvine, Orange County, CA·7/30/2026

California lawmakers are actively considering several legislative proposals aimed at regulating data centers, addressing environmental impacts, and protecting utility customers from increased electricity costs. This legislative push comes amidst growing public scrutiny and opposition to data center expansion, as exemplified by a tour of DataBank's facility in Irvine.

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Gov: California State Legislature

California lawmakers are currently considering a series of legislative proposals designed to regulate data centers across the state. These bills are intended to shield utility customers from rising electricity costs and mitigate potential environmental impacts linked to the industry's continued expansion, particularly fueled by the artificial intelligence boom.

The legislative discussions come amid increasing scrutiny and public opposition to data center development nationwide, with some communities imposing restrictions or temporary moratoriums. A recent "CBS California Investigates" tour of one of DataBank's Southern California facilities in Irvine highlighted how these centers power essential services, yet also demonstrated their significant energy demands. Tom Kordic, DataBank's vice president of operations for the West region, showcased the facility's uninterruptible power systems and backup generators, which are often sources of community concern regarding noise and air pollution.

Sarah T. Roberts, director of UCLA's Center for Critical Internet Inquiry, acknowledged data centers as crucial to the tech ecosystem but warned of their substantial electricity consumption, often reliant on fossil fuels. She conveyed public worries that these resources might be unfairly diverted, leading to higher utility costs for consumers. DataBank Chief Operating Officer Joe Minarik, a former Amazon executive, defended data centers as indispensable for modern life, suggesting some opposition stems from a general fear of AI.

DataBank, which operates around 70 facilities nationally and is developing another in Vernon, faces widespread public skepticism, with a Redfin survey indicating that over half of Americans oppose data centers in their neighborhoods. Roberts concluded that without a fundamental reevaluation of society's dependence on emerging technologies like AI, the demand for data centers is likely to persist.