California Enacts New Environmental, Energy and Water Rules for Data Centers
California has enacted a package of data center laws that requires environmental review, community input, and detailed disclosures about power, water, and noise impacts. The laws also require operators to fund their share of electrical and water infrastructure costs, while some jurisdictions, including Los Angeles County, have adopted temporary moratoria or bans.
California has adopted seven laws aimed at regulating the rapid expansion of data centers, according to the article. The package requires environmental review under the California Environmental Quality Act for most projects, even when local zoning allows data centers by right, and increases community participation in the permitting process. The laws take effect Jan. 1, 2027.
The measures direct the California Public Utilities Commission to establish tariffs requiring data center operators to cover infrastructure, generation, transmission and distribution costs. They also require reporting on electricity, water, cooling systems, noise and fuel use, along with water-supply assessments and scarcity plans. State Sen. Steve Padilla said the regulations are intended to balance the economic benefits of hyperscale projects with concerns about public health, water availability, air quality and rising energy costs. Several local jurisdictions, including Los Angeles County, have separately adopted temporary moratoria or bans on data center development.