California Lawmakers Propose New Regulations to Balance Data Center Growth with Energy and Water Transparency
California lawmakers have sent seven bills to Governor Gavin Newsom for consideration, aimed at increasing oversight of the growing data center industry. The legislation seeks to balance technological innovation with public concerns regarding the physical footprint of data centers, specifically their consumption of water and electricity. Several measures, such as those proposed by Assemblymember Diane Papan and Assemblymember Rebecca Bauer-Kahan, would require data center operators to disclose projected and actual water use and energy efficiency. These bills aim to provide transparency to local communities, allowing them to manage resources more effectively. Additionally, other bills, such as those from Senator Steve Padilla and Senator Jerry McNerney, would direct the California Public Utilities Commission to establish specialized electricity rates for large data center users. This is intended to prevent the costs of new grid infrastructure from being shifted to other utility customers. While the Data Center Coalition argues that data centers are being singled out, the administration announced that the governor will have until September 30 to act on the legislation. The administration announced that the governor's previous veto of similar measures showed a desire to avoid rigid reporting requirements without understanding the full impact on businesses.
Sources
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Big Tech’s data center boom is igniting a political revolt in the Bay Area
mercurynews.com
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Bay Area lawmakers push data center transparency, send bills to California Gov. Gavin Newsom
ABC7 Bay Area
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California Lawmakers Reach Deal on Data Center Electricity Costs
EC&M