California, September 28, 2025
News Summary
California lawmakers’ attempts to strengthen data center regulations have seen significant setbacks, with only two out of four proposed bills reaching Governor Gavin Newsom. The measures, aimed at addressing environmental impacts and water usage, have been notably weakened. Senate Bill 57 and Assembly Bill 93 are currently awaiting action, highlighting growing concerns about the impact of data centers on California’s water resources and electricity rates amidst increasing demand driven by technology.
California lawmakers’ efforts to impose stronger regulations on data centers have encountered significant setbacks this year. Despite initial intentions to protect the environment and electricity ratepayers, only two out of four proposed data center bills are currently awaiting action from Governor Gavin Newsom, and these have been notably weakened.
After a nine-month legislative session, two key bills designed to impose stricter regulations have failed to progress. One proposed bill aimed to require data centers to disclose their power usage, while another sought to incentivize the adoption of cleaner energy practices within the industry.
The two bills that have made it to the governor’s desk include:
- Senate Bill 57: This bill mandates water use disclosure by data center operators but permits less public accessibility to this information.
- Assembly Bill 93: This bill requires data centers to inform water suppliers of their estimated water consumption at the time of business license applications or renewals and encourages the formulation of water use efficiency guidelines.
As data centers increasingly become a public policy issue due to their role in hosting and transmitting digital content—especially for large platforms like TikTok and Amazon—there are growing concerns regarding their environmental impact. This issue has been compounded by the rapid expansion of artificial intelligence technologies, which are driving the demand for more data centers.
The rising number of data centers places heightened demands on water resources for cooling their components, leading to worries about the stress on water reservoirs in California. This has raised alarm over potential increases in electricity costs for residential users, particularly as California is home to one of the largest concentrations of data centers in the world. A reported 40% increase in hookup requests from Pacific Gas and Electric (PG&E) has also contributed to this surge.
In July, the California Public Utilities Commission streamlined the application process for data centers, facilitating their expansion. However, amendments to Senate Bill 57 have reduced its original focus, which aimed to protect energy customers from infrastructure costs that data centers incur. Instead, the bill has shifted its focus to merely assessing potential cost shifts to other electricity customers.
Despite initial support from the Utility Reform Network for Senate Bill 57, significant amendments influenced by data center lobbyists have led the organization to label the bill as ineffective. Following recent alterations, PG&E initially opposed the bill but later withdrew its opposition.
California remains susceptible to severe droughts, which exacerbates concerns regarding water usage by data centers. A study from Stanford highlights the state as an attractive site for future data center projects, particularly in areas with high water stress. Environmental advocates argue that the lack of transparency around data center water usage complicates community awareness and responses to proposed projects.
The ongoing legislative proposals have received criticism, with accusations that they have been watered down to cater to data center operators, thereby limiting public access to crucial water usage data. As data center energy demands continue to grow, projections indicate that by 2030, the energy needed could equate to that of millions of homes in California.
Local governments and communities are increasingly involved in discussions about the environmental ramifications of these projects, calling for greater transparency and fair planning. The expansion of data centers has sparked conflicts over water consumption, air quality, and electricity usage, raising potential public health concerns, including emissions from diesel generators that contribute to greenhouse gases.
Furthermore, there exists a noticeable divide between advocates for the tech industry and environmentalists regarding the need to balance infrastructure expansion with adherence to climate objectives. Experts suggest that innovative solutions within the data center sector are necessary to address the growing demands for power and resources amid California’s challenging climate landscape.
FAQ
What is the current status of the data center regulation bills 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 are the two bills that have progressed to the governor’s desk?
The current bills include Senate Bill 57, which mandates water use disclosure by data center operators but allows for less public accessibility of the information, and Assembly Bill 93, which requires data centers to inform water suppliers of their estimated water consumption during business license applications or renewals.
Why are data centers becoming a public policy concern?
Data centers are increasingly seen as a public policy concern due to their role in storing and transmitting content on the internet, linked to platforms like TikTok and Amazon, and because the demand for AI systems is leading to a surge in data center proliferation.
Key Features of Data Center Regulation in California
| Feature | Details |
|---|---|
| Current Status | Two of four proposed bills are on Governor’s desk |
| Weakened Provisions | Initial bills focused on stricter rules; now diluted |
| Senate Bill 57 | Mandates water use disclosure but less accessible |
| Assembly Bill 93 | Requires water consumption estimates for licensing |
| Environmental Concerns | Increased water and electricity demands amid drought |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: California Legislature Passes Watered-Down Bills
- Wikipedia: Data Center
- LAist: AI Supercomputers and Electricity Costs
- Google Search: Data Centers California
- Daily Journal: California’s Data Centers and Climate Dilemma
- Encyclopedia Britannica: Data Center
- Capital & Main: California AI Data Centers and Dirty Energy
- Google News: Data Center Regulations California
Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
