Dive Brief:
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California Governor Gavin Newsom has enacted seven new bills to enhance oversight of proposed data centers regarding their energy, water, workforce, and land use. This legislation aims to help communities assess the economic implications of these facilities.
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The newly established laws mandate that data centers pay their fair share of costs associated with grid upgrades, disclose water usage to local authorities, and forfeit blanket environmental exemptions.
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These measures follow a recent decision by Los Angeles County’s planning director to impose a temporary ban on the development of large-scale AI data centers in unincorporated areas of the county.
Dive Insight:
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With 296 data centers, California ranks third in the U.S. according to Data Center Map. Governor Newsom emphasized the need for accountability in managing the repercussions of data centers, such as increased electricity demand and potential pollution.
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The signed bills include:
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SB 1168: Directs the California Public Utilities Commission to evaluate data centers’ energy consumption and ensure they contribute to the costs of grid enhancements.
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SB 886 and SB 887: Require data centers to bear all infrastructure upgrade costs and undergo environmental reviews, ensuring local communities have a voice in data center developments.
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AB 1577: Mandates monthly reporting of energy usage and efficiency metrics to state and local agencies during the permitting process.
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AB 2383: Offers incentives for data centers to utilize onsite clean energy resources to effectively plan for the state’s energy future.
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AB 2469 and AB 2619: Enhance transparency in water use by requiring developers to submit a water supply assessment and establish a statewide water reporting requirement.
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Governor Newsom and other officials, such as Assemblymember Diane Papan, stress the importance of responsible management and accountability in resource usage, highlighting that effective governance is key to ensuring that community interests are prioritized.
