California tightens rules on AI data center energy and water use
California Governor Gavin Newsom has signed a package of bills requiring AI data centers to pay for upgrades to local power grids and water systems, and to disclose their estimated water and energy usage. These new laws aim to prevent data centers from passing utility costs onto residents and ensure they meet efficiency requirements for streamlined approval. The measures address concerns about increasing electricity demand, grid strain, and water consumption.
California Governor Gavin Newsom has signed a package of seven bills aimed at regulating AI data centers, as reported by the Los Angeles Times. The new legislation is designed to prevent data centers from shifting utility costs onto California residents and to mitigate their environmental impact, specifically regarding energy and water consumption.
The bills mandate that the California Public Utilities Commission establish a new rate classification for data centers. Under these regulations, data centers will be required to fund upgrades to local power grids and water infrastructure. Additionally, prospective data centers must provide local governments with estimated water usage, energy efficiency plans, and drought preparedness strategies. To qualify for an expedited approval process, they must meet predefined energy, water, and fuel consumption benchmarks.
Governor Newsom emphasized that these laws ensure the state's residents maintain control over resources, stating that "those profiting from data centers aren’t doing so at our expense." He presented the legislation as a counterpoint to federal deregulation trends, aiming to address critical issues such as increased electricity demand, grid strain, water use, and pollution associated with data center expansion.