California lawmakers send new data center water disclosure bills to Newsom
Two California bills requiring data centers to disclose water usage have passed the legislature and are now awaiting Gov. Newsom's signature. This action follows Newsom's veto of a similar bill last year and comes amid growing public and bipartisan concerns over data centers' environmental impact, particularly their water and electricity consumption. Local governments are increasingly implementing bans or moratoriums due to a lack of transparency from the industry.
California lawmakers have advanced two bills to Governor Gavin Newsom's desk, aiming to mandate water use disclosure from data center developers. This legislative push, spearheaded by Assemblymember Diane Papan of San Mateo, seeks to address growing concerns about the environmental impact of the rapidly expanding data center industry, particularly its significant water and electricity consumption.
Assembly Bill 2469 would prohibit local governments from approving new or expanded data centers unless developers disclose their water plans and cover the full cost of necessary water infrastructure. Concurrently, Assembly Bill 2619, which passed the Senate with a decisive 30 to 9 vote, requires data center operators to report estimated or actual water sources and usage under penalty of perjury when seeking or renewing business licenses or permits. These bills are nearly identical to legislation vetoed by Governor Newsom last year, who cited concerns about the potential impact on businesses and consumers.
Since the previous veto, public sentiment has reportedly shifted, with increased bipartisan opposition to data center construction, driven by a lack of transparency regarding environmental impacts. A Public Policy Institute of California survey indicates that most residents oppose local data center development. This opposition has manifested in local actions, with Monterey Park and Coachella enacting permanent bans, and Tulare County considering moratoriums. Industry groups, such as the Data Center Coalition, oppose the bills, arguing they unfairly single out data centers compared to other commercial and industrial water users. Associations representing California cities and counties have also voiced concerns that the legislation could undermine local government authority in permitting processes. However, groups like the Santa Clara Valley Water District support the bills, emphasizing the need for more data for effective water planning.