Newsom targets data center costs, resource usage with bevy of bills
California Governor Gavin Newsom signed seven bills aimed at regulating the price and environmental impact of data centers across the state. The legislation addresses concerns about rising utility costs, increased energy and water consumption, and the need for greater transparency regarding data center operations. These bills modify state rules concerning energy costs, environmental review, and water supply assessments for data center projects.
California Governor Gavin Newsom has signed seven bills into law targeting data center costs and resource usage across the state. The legislation aims to prevent higher utility bills for Californians, increase transparency, and implement environmental safeguards for the controversial facilities.
Newsom emphasized that while the Trump administration advocates for deregulation, California is taking a stronger approach to address issues such as increased electricity demand, grid constraints, water use, and pollution. The signed bills, authored by Democratic lawmakers, cover electricity, water, and land use, as well as reporting requirements.
Key bills include Senate Bill 886, which mandates the Public Utilities Commission update rules to prevent data center energy costs from shifting to other customers. Senate Bill 1168 requires the commission to survey excessive energy use by data centers to ensure it doesn't lead to rate increases. Senate Bill 887 subjects data center projects to the California Environmental Quality Act, a measure highlighted by a recent judicial halt of the large Imperial Valley Data Center project due to inadequate environmental review. Assembly Bill 2383 requires new pricing schedules for data centers.
Other legislation, Assembly Bill 1577 and Assembly Bill 2469, focuses on transparency and resource management, requiring data centers to report energy usage to the California Energy Commission and provide water supply assessments and scarcity plans to local governments before approval. Assembly Bill 2619 further requires developers to provide water use information for business licenses, ensuring local planning can account for new development without compromising water reliability.