How Prop. 45 could reshape California’s fight over data centers
California voters are considering Proposition 45, which opponents say could create a CEQA loophole allowing data centers to bypass recently adopted environmental safeguards and local bans or moratoriums. Supporters, including the Data Center Coalition, dispute that interpretation, while utilities and developers such as PG&E and Prologis are financially backing the measure.
Proposition 45 would streamline environmental reviews for certain infrastructure projects in California. Legal scholars and environmental advocates warn that its broad language could encompass data centers or related infrastructure, potentially overriding Senate Bill 887 and weakening local authority over data center permits, bans and moratoriums.
The Data Center Coalition and a California legislative counsel opinion maintain that data centers are outside the measure's scope. The proposition has nevertheless attracted substantial support from interests tied to the state's computing expansion, including $3.05 million from PG&E and $500,000 from Prologis. The debate comes as California implements new laws requiring data center operators to disclose water use, fund grid upgrades and undergo environmental review, while opposition has emerged in at least 26 cities and counties.