California governor signs seven data centre oversight bills, targeting AI-linked development
California Governor Gavin Newsom has signed seven bills regulating the data centre industry, requiring disclosures on electricity use, water consumption and land use. The measures aim to prevent grid-upgrade costs from being shifted onto other ratepayers and to boost clean-energy supplies.
California Governor Gavin Newsom on Monday signed seven bills aimed at regulating the fast-growing data centre 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 centres 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 centres 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 centres aren't doing so at our expense," Newsom said in a statement. California said the legislation will require data centres 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 centres on electricity demand, water resources and local infrastructure as technology companies race to expand artificial intelligence capabilities. The rapid expansion of AI data centres 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, was not immediately available for comment. The group has said previously that the bills unfairly single out data centres rather than other large industrial and commercial electricity users, and warned the measures could push projects to other states.