California governor signs broad data center oversight bill package
FILE PHOTO: California Governor Gavin Newsom speaks at the Center for American Progress (CAP) IDEAS Conference at The Mayflower Hotel in Washington, D.C., U.S., May 19, 2026. REUTERS/Annabelle Gordon/File Photo
Sept 21 : California Governor Gavin Newsom on Monday signed seven bills aimed at regulating the fast-growing data center industry, imposing new requirements on electricity costs, water use and local oversight as communities push back against a surge in AI-linked development.
• The legislation requires data centers to disclose information about electricity use, water consumption, land use and workforce needs, while giving local communities more information to assess proposed projects.
• The measures are designed to prevent the cost of new power generation and grid upgrades needed for data centers from being shifted onto other ratepayers.
• "With these laws, we are ensuring that Californians remain in the driver’s seat — and that those profiting from data centers aren’t doing so at our expense," Newsom said in a statement.bills
• California said the legislation will require data centers to comply with the state's energy procurement requirements and help bring new clean-energy supplies onto the grid.
• The measures come amid growing concern nationwide over the impact of data centers on electricity demand, water resources and local infrastructure as technology companies race to expand artificial intelligence capabilities.
• The rapid expansion of AI data centers has sparked resistance in California and elsewhere, with residents and advocacy groups raising concerns about electricity bills and pollution associated with the facilities.
• The Data Center Coalition, an industry trade group, said its members were committed to responsible development but warned the measures could push projects to other states: "Legislation such as these create significant uncertainty and introduces potentially duplicative requirements that make doing business in California an unattractive proposition for data centers and other industries," Khara Boender, a director of government affairs for the group, said in a statement. "These are likely to further limit data center development in California — an already declining market—which pushes job creation, clean energy deployment, and tax revenue to neighboring states."
