Gov. Gavin Newsom signs ‘most comprehensive data center laws’ in US
California Governor Gavin Newsom signed seven new laws regulating data centers, which require operators to report water consumption and fund electricity grid upgrades. This action addresses growing public concerns over data centers' environmental impact and resource demands. The new legislation aims to ensure accountability from companies profiting from these facilities.
California Governor Gavin Newsom has signed seven new data center regulations into law, directly addressing public concerns about the facilities' significant demands on water and electricity. The new legislation mandates that data center operators report their water consumption and contribute financially to upgrades for the electricity grid to offset increased demands.
Governor Newsom stated that these laws are crucial for Californians to maintain control over their resources, contrasting with deregulation efforts at the federal level. The package of bills includes a measure previously vetoed by Newsom last year, proposed by Assemblymember Diane Papan of San Mateo, which aimed for water usage disclosure during licensing applications. Newsom had initially expressed reluctance to impose rigid reporting requirements without a full understanding of the business impact.
The legislative action comes as communities across the U.S. increasingly voice opposition to data center expansion, citing issues such as rising electricity bills, partly driven by the growth of artificial intelligence. Some regions are even considering or have implemented moratoriums on data center development.