Report highlights undisclosed water use by California data centers; lawmakers propose new regulations

A new report by the think tank Next10 and Santa Clara University researchers reveals that data center developers in California are not transparently disclosing their water usage, raising concerns as the industry expands into water-stressed regions like the Central and Imperial Valleys. The study, which reinforces previous findings, highlights a fragmented regulatory landscape at state, federal, and local levels that allows operators to avoid public disclosure of water consumption.

California lawmakers, led by Assemblymember Diane Papan of San Mateo, are making a renewed effort to mandate water use disclosures after Governor Gavin Newsom vetoed a similar measure last year, citing concerns about the impact on businesses. Papan has introduced two new bills: one requiring operators to report estimated or actual water use to suppliers, cities, and counties when seeking or renewing permits, and another prohibiting local governments from approving new or expanded data centers unless developers disclose water use plans and meet other requirements, such as avoiding overdrafted groundwater basins.

The lack of transparency has fueled local opposition, with Monterey Park residents successfully opposing a data center project due to environmental concerns and inadequate information, leading to an upcoming vote on a citywide ban. Debates are also emerging in Kern County and the Imperial Valley regarding proposed data centers and their potential impact on dwindling water resources. The Data Center Coalition opposes more granular reporting, arguing the industry uses less water than other sectors, a claim not backed by specific data and disputed by researchers who emphasize the importance of local supply and demand.