California

Data center activity in California

Regulatory Environment

-5 pts

California's regulatory environment reflects the intersection of high market demand and strong community resistance, with at least 87 moratoriums enacted and only 5 rejected, and at least 38 projects blocked compared to 9 approved despite opposition. Zoning outcomes are modestly positive, with at least 42 approvals and 13 denials, indicating that permitting can succeed but faces meaningful hurdles. Compared to neighboring Nevada, where moratorium and opposition volumes are lower, California's larger population and stronger environmental advocacy create more friction across more jurisdictions. The 125 active companies demonstrate enduring market confidence despite these challenges, driven by California's unrivaled connectivity infrastructure and proximity to major cloud and enterprise customers.

How is this scored?

Regulatory Environment Score

-5 pts

How is this scored?

News Clip매일경제·Santa Clara, Santa Clara County, CA

Santa Clara Implements Flexible Power Program for Data Centers Amid Grid Strain

Santa Clara has introduced a Flexible Load Link Program (FLIP) allowing its municipal utility, Silicon Valley Power (SVP), to reduce or cut off electricity to data centers during periods of grid insufficiency. This program allows large power users like data centers to connect to the grid faster, addressing delays experienced by developers such as Stack Infrastructure. A pilot program with Nvidia and Emerald AI is also underway to dynamically adjust AI workloads based on grid conditions.

electricity government

Nvidia

9/9/2026

News ClipState Affairs·CA

California passes bills to protect ratepayers from data centers

California lawmakers have approved new legislation aimed at regulating energy and water consumption by data centers. The bills seek to protect ratepayers from potential cost increases resulting from the growing demands of data center operations in the state.

electricity water government

9/9/2026

News Clipmarketplace.org·Monterey Park, Los Angeles County, CA

This California city became a model for resisting data centers

Residents of Monterey Park, California, successfully organized against a proposed data center project, citing concerns over water and electricity consumption. This led the city council to approve an ordinance banning data centers, which was then ratified by a public vote. Monterey Park has since become a model for other communities in California and across the U.S., including Missoula, Montana, and Coachella, California, which have also enacted bans or blocked projects.

opposition zoning environmental electricity government

9/8/2026

News ClipGilroy Dispatch·Gilroy, Santa Clara County, CA

Gilroy Data Center Project Criticized Over Permits, Resource Consumption

A Gilroy resident expressed strong opposition to a local data center project, citing concerns over massive electricity and water consumption, noise, and environmental impact. The author criticized the rapid issuance of permits without public input and accused city officials, including Mayor Greg Bozzo, of being improperly incentivized. The letter concludes with a call to recall Mayor Bozzo if he fails to halt the project.

opposition electricity water environmental government zoning

Amazon

9/8/2026

News Clipcitybuzz.co·Los Angeles, Los Angeles County, CA

Eco Wave Power Eyes AI-Driven Electricity Demand as It Expands Wave Energy Commercialization

Eco Wave Power is positioning its onshore wave energy technology as a solution for the growing electricity demand from AI and data centers. The company gained visibility through its association with NVIDIA and has a pilot station at the Port of Los Angeles. It aims to provide clean electricity to energy-intensive digital infrastructure.

electricity environmental announcement government

9/8/2026

News ClipModesto Bee·Modesto, Stanislaus County, CA

Modesto district considers how to safeguard ratepayers against data center impacts

The Modesto Irrigation District is considering new safeguards, such as requiring upfront collateral and potentially creating a separate rate tier, to protect local ratepayers from the financial impacts of large data centers on the electricity system. Concerns about water usage and potential project abandonment are also being discussed by the board. The district clarified it has no jurisdiction over land use approvals, which lie with Stanislaus County and its cities.

electricity water government zoning opposition

9/8/2026

News ClipHoodline·El Segundo, Los Angeles County, CA

Rainmaker Pitches Cloud Seeding to Ease Data Center Water Fears

A Southern California startup, Rainmaker, is pitching cloud seeding as a solution to data centers' increasing water consumption and the resulting public backlash. While Rainmaker claims its technology can bring more water back to the ground, critics question its effectiveness and argue it's a distraction from the fundamental sustainability challenges. Meanwhile, California lawmakers have adopted new bills requiring data center developers to disclose water usage and contribute to local infrastructure.

water environmental government opposition

Microsoft Google

9/8/2026

News ClipCity of Hayward (.gov)·Hayward, Alameda County, CA

Hayward Council to consider move to ban data centers at its upcoming Sept. 15 meeting

The Hayward City Council is set to discuss a potential ban on new data center development in the city at its upcoming September 15 meeting. This action stems from a legislative referral by Mayor Mark Salinas, Mayor Pro Tempore George Syrop, and Councilmember Angela Andrews, in response to significant public outcry regarding data center impacts. If approved, City staff will begin amending the zoning code to prohibit new data centers.

moratorium zoning environmental government opposition

9/8/2026

News ClipSFGATE·Perris, Riverside County, CA

Perris data center proposal faces no opposition, surprising officials

A proposal by Global Stack for an "edge" data center at the Southern California Fairgrounds in Perris encountered no public opposition at a recent board meeting, surprising officials amidst widespread anti-data center sentiment in California. While many other cities and counties have rejected similar projects or enacted moratoriums, the Perris board signed a nonbinding agreement to allow further feasibility studies. The article highlights statewide concerns about data center water and electricity usage, even for smaller facilities.

opposition environmental government zoning moratorium electricity water

9/8/2026

News Clippluribusnews.com·CA

Data center bills aim to keep electricity costs from falling on other Calif. ratepayers

California lawmakers have given final approval to several bills addressing data center concerns. The legislation aims to protect ratepayers from higher electricity costs and increase transparency regarding data centers' energy and water use. These bills were approved just before the Legislature's deadline.

electricity water government

9/8/2026

News ClipThe Desert Sun·Coachella, Riverside County, CA

Data center developer presses Coachella over cancelled contract. Will lawsuit follow?

A data center developer is challenging the City of Coachella over a cancelled contract. The situation indicates that a lawsuit may be filed in response to the contract termination.

legal government

9/8/2026

News Clipthebusinessjournal.com·CA

California data centers face water use disclosure rules as AI demand grows$

California lawmakers have passed two bills requiring data centers to disclose water usage and plans, which are now awaiting Governor Newsom's signature. This legislative effort aims to increase transparency amid growing concerns over the industry's significant water consumption, particularly with the surge in AI demand. Experts emphasize the current lack of public data, making it challenging to verify the actual water impact of data centers.

water government environmental

OpenAI

9/8/2026

News ClipThe San Francisco Standard·CA

Tech Companies Explore Cloud Seeding Amid Data Center Water Scrutiny

Tech companies are exploring controversial cloud seeding technology to address the significant water consumption issues of data centers. This initiative, spearheaded by the Southern California startup Rainmaker, comes amidst growing public and governmental opposition to data centers, particularly in drought-prone areas. While some tech giants are implementing water recycling, artificial rainmaking is being considered as a direct solution to mitigate environmental concerns and public backlash over water usage.

water environmental opposition government

Microsoft Google

9/8/2026

News ClipModesto Bee·Riverbank, Stanislaus County, CA

Riverbank could join cities pausing data centers. One already has been proposed

The Riverbank City Council is set to consider a 45-day moratorium on new artificial intelligence data centers, prompted by a proposal from Aemetis Inc. for a 60-megawatt facility. This temporary pause aims to allow city staff to research the potential impacts of data centers, including concerns about water and electricity consumption, noise, and job creation. Other California municipalities are also enacting or exploring similar moratoriums.

moratorium electricity water zoning opposition government

9/8/2026

News ClipLAist·CA

California Lawmakers Pass Data Center Water Disclosure Bills to Governor's Desk

Two California bills, AB 2469 and AB 2619, requiring data center developers to disclose water usage and cover infrastructure costs, have passed the legislature and await Governor Newsom's signature. These bills are a response to growing public and local government concerns over data centers' environmental impact, particularly water and electricity consumption. Several California cities and counties have already enacted or are considering local moratoriums and bans on data center development.

water environmental government opposition moratorium

Digital Realty

9/8/2026

News ClipLAist·CA

California Legislature Approves Data Center Water Disclosure Bills for Governor's Review

California lawmakers have approved two bills (AB 2469 and AB 2619) requiring data center developers to disclose water usage plans and cover infrastructure costs, with the measures now awaiting Governor Gavin Newsom's signature. This legislative effort aims to increase transparency amidst growing public and political opposition to data centers' environmental impact, especially concerning water and electricity consumption. Newsom had vetoed a similar bill last year, but proponents argue public sentiment has shifted.

water government environmental opposition electricity moratorium

Digital Realty

9/8/2026

News ClipSFGATE·Perris, Riverside County, CA

California fairgrounds consider 'edge' data center proposals amid statewide opposition

Global Stack is proposing small "edge" data centers at fairgrounds across California. While many locations have seen strong public opposition, a recent meeting for a proposed data center in Perris saw no protests, surprising officials. The project, which includes parking structures and emergency response features, is still in early stages and faces broader scrutiny regarding its financial stability and potential conflicts of interest.

opposition environmental government zoning moratorium

9/8/2026

News ClipJefferson City News Tribune·Hanford, Kings County, CA

Backlash over data centers hits California, midterms

Residents in Hanford, California, are actively opposing a proposed data center project by Global Stack USA at the Kings County fairgrounds due to concerns about air pollution, water strain, and utility costs. This local backlash is indicative of a broader national trend impacting midterm elections and prompting legislative action, with California lawmakers recently passing regulations for the industry.

opposition environmental government electricity water moratorium

9/8/2026

News ClipImperial Valley Press Online·CA

California data center policy: Strategies for community trust and sustainable development

A recent poll indicates significant public skepticism regarding data center construction, prompting a discussion on how the tech industry can regain community trust. This involves embracing transparent planning, ensuring host communities share in economic benefits, and accelerating clean energy deployment. The article cites Microsoft's end to NDAs with government officials and Virginia's data center electricity tax as examples of policy shifts.

opposition environmental electricity water government

Microsoft

9/8/2026

News ClipNBC Palm Springs·Palm Springs, Riverside County, CA

Palm Springs City Council to Receive Update on Data Center Moratorium

The Palm Springs City Council is scheduled to receive an update on its temporary 45-day moratorium on new data center projects. The moratorium, enacted on August 26 and set to expire October 10, allows city officials to study potential regulations and consider longer-term rules as part of the city's zoning code update.

moratorium government zoning

9/7/2026