California, September 28, 2025
News Summary
California lawmakers encounter significant hurdles in enacting stricter regulations for data centers, which are crucial for environmental protection and electricity cost management. After months of deliberation, just two of the four proposed bills have made it to the governor, with notable amendments weakening their original intent. Senate Bill 57 focuses on water use transparency, while Assembly Bill 93 promotes efficiency guidelines. The failure of other bills raises concerns about data centers’ environmental impact amidst rising demands for water and electricity.
California lawmakers are facing setbacks in their efforts to impose stricter regulations on data centers that are seen as vital to protecting the environment and safeguarding electricity ratepayers. After nine months of deliberations, only two out of four proposed bills have made it to Governor Gavin Newsom’s desk, and those bills have been significantly weakened during the legislative process.
Among the two bills currently awaiting the governor’s signature is Senate Bill 57, which mandates water use disclosure by data center operators. However, the bill allows the information to be less accessible to the public. The other bill, Assembly Bill 93, requires data centers to notify water suppliers of their estimated water consumption during business license applications or renewals and encourages the development of water use efficiency guidelines.
Two additional bills that aimed to enhance regulations on data centers failed to progress in the Legislature. One such bill would have made it mandatory for data centers to disclose their power usage, while the other sought to provide incentives for cleaner energy practices in these facilities.
As data centers play a crucial role in storing and transmitting internet content from platforms like TikTok and Amazon, they have increasingly become a concern for public policy. The rising demand for artificial intelligence (AI) applications, particularly systems like ChatGPT, has contributed to a surge in the number of data centers operational in California.
With the rapid expansion of data centers comes the urgent need for resources such as electricity and water. These facilities are known to place significant demands on local water supplies, as they require water to cool components like semiconductors. This raises concerns about water reservoir stress and the potential for increased electricity costs for consumers.
California has one of the world’s largest concentrations of data centers, with ongoing projects responding to a reported 40% increase in hookup requests from Pacific Gas and Electric (PG&E). In a bid to facilitate this growth, the California Public Utilities Commission streamlined the project application process for data centers in July.
Amendments to Senate Bill 57 have diluted its initial intent of protecting energy customers from the infrastructure costs associated with data centers. The law now merely requires an assessment of potential cost shifts to other customers. The Utility Reform Network, which initially supported the bill, later criticized it as ineffective due to significant amendments influenced by lobbyists for data centers. PG&E, which initially opposed the bill, reversed its stance after recent changes.
The rising number of data centers raises substantial water use concerns in drought-prone California. A Stanford study identified the state as an appealing location for future data centers, especially in areas already facing high water stress. Environmental advocates argue that the lack of transparency regarding water usage by data centers complicates community objections and local understanding of the projects’ impacts.
Opponents of the existing legislative proposals claim they have been watered down to favor data center operators at the expense of public access to vital information regarding water usage. California’s energy grid is increasingly challenged by the growing electricity demands of these facilities, with projections indicating future needs that could be equivalent to the power supply for millions of homes by 2030.
Communities and local governments are becoming more engaged in discussions about the environmental effects of data center expansions, focusing on the need for transparency in planning. Heightened awareness of issues surrounding water consumption, air quality, and electricity loads has sparked disputes and raised concerns about potential public health risks.
Critics also express worries about the deployment of diesel generators in data centers, which have been linked to significant greenhouse gas emissions. The ongoing discourse highlights a growing divide between tech advocates and environmentalists regarding the balance between advancing infrastructure and achieving climate goals. Experts assert the need for innovation in the data center industry to navigate increasing demands for power and resources in California’s evolving climate landscape.
FAQ
What is the current status of data center regulation in California?
After nine months, only two out of four proposed data center bills are currently on Governor Gavin Newsom’s desk, and those have been significantly weakened.
What do the current bills include?
Senate Bill 57 mandates water use disclosure by data center operators but allows the information to be less accessible to the public. Assembly Bill 93 requires data centers to inform water suppliers of their estimated water consumption during business license applications or renewals and encourages the development of water use efficiency guidelines.
Why are data centers a concern in California?
Data centers are increasingly seen as a public policy concern due to their role in storing and transmitting content on the internet. The demand for AI has led to a surge in data centers, which raises concerns over their water consumption and the impact on electricity costs for residential customers.
Key Features of Data Center Regulation in California
| Feature | Bill Status | Key Details |
|---|---|---|
| Senate Bill 57 | On Governor’s desk | Mandates water use disclosure but limits public access to the information. |
| Assembly Bill 93 | On Governor’s desk | Requires water use notification during license applications and promotes efficiency guidelines. |
| Failed Bill 1 | Failed | Would have required disclosure of power usage. |
| Failed Bill 2 | Failed | Sought to incentivize cleaner energy practices in data centers. |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: California Legislature Passes Watered-Down Bills
- Power Engineering: Surging California Data Center Growth
- Capital & Main: California AI Data Centers and Dirty Energy
- LAist: AI Supercomputers and Electricity Costs
- Wikipedia: Data Center
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