What is the current status of data center regulations 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 concerns have been raised about data centers?

Concerns include higher demands for water to cool components, potential higher electricity costs for residential customers, and the impact of data centers on water resources in drought-prone areas.

Why do data centers pose a public policy concern?

Data centers are increasingly recognized for their role in storing and transmitting content on the internet, and their rapid expansion due to AI demand raises environmental and resource allocation issues.

What has been the reaction to the legislative proposals concerning data centers?

Critics argue that proposals have been diluted to favor data center operators, with reduced public access to water usage data and potential compromises on transparency.

September 28, 2025

California Lawmakers Face Challenges in Data Center Regulations

California, September 28, 2025

News Summary

California lawmakers are struggling to enforce stricter regulations on data centers, as only two out of four proposed bills have reached the governor’s desk, significantly weakened. Senate Bill 57 and Assembly Bill 93 address water usage disclosures, but critics argue these bills fail to adequately protect public interests. With California experiencing increased demands for data centers, especially due to AI technologies, concerns over environmental impacts and transparency rise. The debate continues between tech advocates and environmentalists on balancing data center growth and climate goals.

California lawmakers aimed to enforce stricter regulations on data centers this year to safeguard the environment and protect electricity ratepayers. However, after nine months of deliberation, only two out of four proposed data center bills have reached Governor Gavin Newsom’s desk, and those are significantly weakened from their original form.

Among the two bills still pending approval, Senate Bill 57 mandates water use disclosure by data center operators but permits 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. Conversely, two other proposed bills have failed to advance in the Legislature, specifically ones that would have mandated data centers to disclose power usage and incentivize cleaner energy practices.

The rising prominence of data centers is under scrutiny due to their critical role in storing and transmitting content online, supporting platforms like TikTok and Amazon. Increased demand for artificial intelligence (AI) technologies, particularly systems like ChatGPT, has led to an expansion in the number of data centers. This surge in data center development raises worries about the substantial amounts of water needed to cool sensitive electronic components, such as semiconductors, which may place additional strain on local water resources and trigger increased electricity costs for residential customers.

California houses one of the world’s largest concentrations of data centers, and ongoing projects are expected due to a reported 40% increase in hookup requests from Pacific Gas and Electric (PG&E). In July, the California Public Utilities Commission streamlined the project application process for data centers, facilitating quicker approvals.

Amendments to Senate Bill 57 modified its initial focus on protecting energy customers from potential infrastructure costs associated with data centers, paring down its mandate to merely evaluating possible cost shifts to other utility customers. The Utility Reform Network, which previously supported the bill, later deemed it ineffective due to significant amendments influenced by data center lobbyists. PG&E, which initially opposed the bill, withdrew its objections following these changes.

This environment is particularly critical in California, known for its drought conditions. A Stanford study highlights the state as a prime location for future data center projects, especially in areas with high water stress. Environmental advocates express concerns over a lack of transparency in data center water usage, arguing it complicates community understanding of the local implications of these projects.

Critics claim that current legislative proposals have been diluted to favor data center operators, reducing public access to essential water usage data. The increasing energy demands from data centers are adding stress to California’s electrical grid, with projections suggesting power needs equivalent to supplying millions of homes by 2030.

Local governments and communities are increasingly engaging in discussions focused on the environmental impacts of data centers, emphasizing the necessity for transparency and fairness in planning. Disputes have arisen regarding water consumption, air quality, and electricity loads, contributing to potential public health risks. Additionally, concerns persist over the deployment of diesel generators at data centers, which significantly contribute to greenhouse gas emissions.

The divide between tech advocates and environmentalists is widening, raising discussions about finding a balance between expanding data center infrastructure and adhering to climate goals. Experts indicate that innovative solutions within the data center industry are essential to meet escalating power and resource demands in California’s changing climate.

Frequently Asked Questions

What is the current status of data center regulations 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 Senate Bill 57 and Assembly Bill 93 entail?: 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.
What concerns have been raised about data centers?: Concerns include higher demands for water to cool components, potential higher electricity costs for residential customers, and the impact of data centers on water resources in drought-prone areas.
Why do data centers pose a public policy concern?: Data centers are increasingly recognized for their role in storing and transmitting content on the internet, and their rapid expansion due to AI demand raises environmental and resource allocation issues.
What has been the reaction to the legislative proposals concerning data centers?: Critics argue that proposals have been diluted to favor data center operators, with reduced public access to water usage data and potential compromises on transparency.

Deeper Dive: News & Info About This Topic

Author: STAFF HERE CORONADO

The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego 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 the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.

STAFF HERE CORONADO

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