Fly traps
California lawmakers are advancing seven bills to regulate data centers, driven by increasing public opposition over utility costs, water use, and grid strain. Tech and utility companies, including Amazon, Anthropic, PG&E, and Southern California Edison, are spending millions lobbying to influence these legislative efforts. The outcome of these bills in California could serve as a bellwether for data center regulation nationwide.
Companies backing data center construction are engaging in extensive lobbying efforts in Sacramento, California, aiming to counter seven bills that would regulate these facilities. These bills are currently advancing through the California Legislature.
Key players in this lobbying push include major tech companies like Amazon and AI titan Anthropic, as well as utility giants such as Pacific Gas & Electric (PG&E) and Southern California Edison. PG&E's recent lobbying spend marks its second-highest quarter since 1999. The financial investment by these entities seeks to prevent or dilute the proposed regulations, following a year where similar bills died or were weakened due to industry lobbying.
The renewed push for regulation comes amidst a significant public backlash against data center construction. Polls indicate strong voter opposition in communities across the U.S. and California, driven by concerns over utility costs, water usage, and strain on the power grid. Hundreds of cities have already considered or passed local project bans, with Monterey Park voters, for instance, approving a permanent ban, and Bay Area cities like Pittsburg backtracking on previous approvals.
California Sen. Steve Padilla, author of two of the pending data center bills, notes the high level of public awareness and bipartisan concern regarding these developments. The outcome of these legislative measures in California is seen as a crucial indicator for how similar regulatory challenges might unfold in other states.