California Governor Newsom Reverses Course on Data Center Water Reporting and AI Controls
California Governor Gavin Newsom has reversed his earlier stance on AI and data center regulation. After vetoing a bill in 2025 that would have required data centers to report water use, he is now signing similar legislation and issuing executive orders to control the industry. This shift is attributed to political motivations ahead of midterms.
California Governor Gavin Newsom has significantly altered his position on artificial intelligence and data center regulation within a year. In October 2025, Newsom vetoed a bill mandating data centers to report their past and anticipated water usage when applying for or renewing business licenses. His rationale at the time was to position California as a global leader in AI innovation, expressing reluctance to impose "rigid reporting requirements" that could stifle growth.
However, the governor is now signing legislation, including a bill that requires data centers to disclose water consumption, marking a complete reversal. He is also issuing executive orders to develop an "AI kill switch" and forming a committee to devise new regulations. Newsom attributes this shift to addressing "very real concerns" regarding AI's impact and the significant water and energy demands of data centers, aligning with a broader Democratic strategy to adopt an anti-AI message ahead of upcoming midterms. Critics, like the article's author, suggest Newsom's change of heart is politically motivated to "bury" his previous pro-AI record and appear decisive on oversight, despite other states having initiated safeguards earlier.