Data centers

Data centers

News ClipLAist·Monterey Park, Los Angeles County, CA·5/17/2026

A new report reveals that data centers in California are expanding into water-stressed regions without public disclosure of their actual water usage. State lawmakers are reintroducing bills to mandate transparency after a previous measure was vetoed, while local communities like Monterey Park are actively opposing projects.

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Gov: California Gov. Gavin Newsom, California Legislature, Assemblymember Diane Papan, Data Center Coalition, Planning officials, State water managers

A report by the think tank Next10 and Santa Clara University researchers highlights that data centers, crucial for artificial intelligence, are increasingly being planned in California's water-stressed regions, including the Central and Imperial Valleys. The study criticizes a lack of transparency, noting that current state, federal, and local policies allow data center operators to avoid publicly disclosing their water consumption.

Despite previous efforts, including a bill authored by Assemblymember Diane Papan of San Mateo that was vetoed by Gov. Gavin Newsom last year due to industry pressure, California lawmakers are again proposing legislation. These new bills aim to mandate disclosures about water use and planning, with one bill also proposing to prohibit new data centers in overdrafted groundwater basins unless approved by state water managers. The Data Center Coalition, represented by Khara Boender, has opposed stricter reporting, asserting the industry's commitment to being a "good neighbor" without providing specific data.

The findings reinforce concerns about the local impacts of data center water use, regardless of comparisons to other industries. Communities, such as Monterey Park in the San Gabriel Valley, have successfully opposed a data center project due to environmental concerns and insufficient information, prompting an upcoming vote on a citywide ban. Experts like Irina Raicu of Santa Clara University and Shaolei Ren of UC Riverside emphasize the critical need for data to facilitate informed public discussions on power-water trade-offs as California faces a significant build-out of data infrastructure.