Who pays for AI’s power? California watchdog urges new data center rules

The Little Hoover Commission, a California watchdog, has released a report urging policymakers to act on the state's rapidly growing data center industry. The report warns that the soaring electricity demand from artificial intelligence could lead to higher electricity bills for ordinary households, rather than being paid for by the tech companies operating the data centers. The commission outlines recommendations to manage the industry's impact on the power grid, electricity prices, and the state's climate goals, including requiring data centers to pay the full cost of the infrastructure and grid services they require, and limiting pollution from backup generators. Lawmakers in Sacramento are preparing new proposals to regulate the data center industry, after similar efforts last year faced opposition from the tech industry and business groups.