Newsom signs 7 bills tightening rules for proposed data centers
Governor Gavin Newsom signed seven bills in California that impose stricter regulations on proposed data centers statewide. These new laws require data centers to disclose their electricity and water usage and supply plans, and to cover the costs of associated grid and water system upgrades. The legislation aims to prevent these project costs from being passed on to other utility customers.
California Governor Gavin Newsom has signed seven bills into law that will significantly tighten regulations on proposed data centers across the state. The new legislation, signed on a Sunday, mandates that data centers provide comprehensive information regarding their electricity and water usage, supply plans, and drought preparedness to local governments and water suppliers.
A key aspect of these laws requires data center projects to bear the financial responsibility for certain upgrades to both the electrical grid and water systems that are necessitated by their development. This measure is specifically designed to prevent these project-related costs from being shifted to other utility customers. Among the bills, SB 886 directs the California Public Utilities Commission to establish or update electricity rules for large facilities, including data centers, by January 1, 2028, ensuring that impacts on other customers are assessed and cost shifts are avoided. The package of bills, which also includes AB 1577, AB 2383, AB 2469, AB 2619, SB 887, and SB 1168, collectively addresses critical issues such as electricity, water use, and environmental review processes for data center proposals in California.