California governor signs broad data center oversight bill package

The measures come amid growing concern nationwide over the impact of data centers on electricity demand, water resources and local infrastructure as technology companies race to expand artificial intelligence capabilities.

The rapid expansion of AI data centers 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, said its members were committed to responsible development but warned the measures could push projects to other states: "Legislation such as these create significant uncertainty and introduces potentially duplicative requirements that make doing business in California an unattractive proposition for data centers and other industries," Khara Boender, a director of government affairs for the group, said in a statement. "These are likely to further limit data center development in California — an already declining market — which pushes job creation, clean energy deployment, and tax revenue to neighboring states."

Sept. 21 (Reuters) - California Governor Gavin Newsom on Monday signed seven bills aimed at regulating the fast-growing data center 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 centers 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 centers 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 centers aren’t doing so at our expense," Newsom said in a statement.