California advances data center water disclosure bills after previous veto
California lawmakers have passed two bills, AB 2469 and AB 2619, requiring data center developers to disclose their water usage plans and costs. These bills are now awaiting Governor Gavin Newsom's signature, following his veto of a similar bill last year. The legislation comes amid increasing public and local government opposition to data centers, driven by environmental concerns and a lack of transparency.
California lawmakers have passed two bills, Assembly Bill 2469 and Assembly Bill 2619, aimed at increasing transparency regarding water usage by data centers. Authored by Assemblymember Diane Papan, both bills require data center developers to disclose their estimated or actual water sources and usage, with AB 2469 also mandating that developers cover the full cost of any new water infrastructure required for their facilities. These measures have now been sent to Governor Gavin Newsom for his consideration.
The legislative push follows Governor Newsom's veto of a similar bill by Papan last year, citing concerns about imposing rigid reporting requirements without fully understanding the impact on businesses and consumers. However, public sentiment has reportedly shifted, with recent surveys indicating a majority of residents oppose new data center construction due to environmental concerns related to water and electricity. This growing backlash has led to local actions such as permanent bans in Monterey Park and Coachella, and Tulare County considering moratoriums.
The bills face opposition from the tech industry, including the Data Center Coalition, which argues that singling out data centers for reporting requirements is unfair and that such rules should apply to all non-agricultural water users. Advocacy groups like the League of California Cities, the California State Association of Counties, and the Rural County Representatives of California also expressed concerns that the bills could undermine local governments' ability to manage development. Conversely, environmental and community groups support the bills, as does the Santa Clara Valley Water District, which believes more water use information would aid local planning.
Michael Kiparsky, director of the Wheeler Water Institute at the UC Berkeley Center for Law, Energy, & the Environment, views the bills as