Newsom’s data center laws could reshape Rucci project
Two California laws signed by Gov. Gavin Newsom will impose new environmental-review and electricity-cost requirements that could affect Sebastian Rucci’s proposed nearly one-million-square-foot AI data center near Imperial. The project also faces a water-supply lawsuit against the Imperial Irrigation District, while Imperial County has repealed its data center moratorium after a court order.
California Gov. Gavin Newsom signed Senate Bills 886 and 887, changing the regulatory framework for large data centers such as Sebastian Rucci’s proposed Imperial Valley Computer Manufacturing facility near Imperial. SB 887 limits the use of categorical CEQA exemptions and creates an expedited environmental-review pathway for projects meeting strict energy, water and environmental standards. SB 886 directs the California Public Utilities Commission to create tariffs ensuring qualifying large customers pay for the utility infrastructure they require, although its mandatory provisions may not directly apply to the publicly owned Imperial Irrigation District.
The project remains under scrutiny over its projected electricity demand, estimated at nearly twice Imperial County’s 2024 consumption, and its potential use of about 750,000 gallons of water per day. Imperial Valley Computer Manufacturing has sued IID seeking access to roughly 260 million gallons of Colorado River water annually after efforts to secure recycled wastewater reportedly failed. Imperial County also repealed its prior data center moratorium following an Imperial County Superior Court writ, while a county advisory committee continues examining zoning, infrastructure and land-use standards for future data centers.