Newsom Signs Bills Regulating Data Centers’ Water, Energy Use
California Governor Gavin Newsom has signed new laws (SB 886 and AB 2383) that will regulate data centers in the state. The legislation aims to prevent data centers from passing electricity costs to residents and requires them to report their energy and water usage, while also establishing special energy rates and mandating payments for infrastructure upgrades by 2028.
California Governor Gavin Newsom has signed two significant bills, SB 886 and AB 2383, into law, imposing new regulations on data centers within the state. These measures aim to prevent data centers from shifting electricity costs onto residents and mandate comprehensive reporting of their energy and water consumption.
Under the new legislation, which is set to take effect by 2028, data centers will be subject to special energy rates. Furthermore, they will be required to fund infrastructure upgrades necessary to support their operational demands. This move comes amidst broader concerns about the financial impact of data center development on utility costs and resource allocation.