The fight comes as California Governor Gavin Newsom weighs a package of bills intended to protect state residents from the costs of powering data centers and increase transparency around their energy and water use.
Air quality is a particular concern. In April, a coalition led by the Center for Biological Diversity petitioned the Bay Area Air Quality Management District to strengthen oversight of diesel backup generators used at data centers, arguing that existing regulations predate the recent expansion of AI-related facilities.
The district said it is exploring whether stronger protections are warranted.
The concerns raised in San Jose have increasingly made their way to Sacramento, California's capital.
Lawmakers recently gave final approval in both the state Senate and Assembly to several bills addressing data centers, including measures intended to ensure large electricity users pay their share of grid-related costs and requirements aimed at increasing transparency around energy and water consumption.
State Senator Steve Padilla, who authored several of the measures, said California has an obligation to lead because it is home to many of the world's largest technology companies.
The Data Center Coalition, an industry trade group whose members include Google, Meta, OpenAI and Anthropic, said it supports responsible growth but argued the bills unfairly single out data centers rather than other large industrial and commercial electricity users. The group warned the measures could discourage investment and push jobs, tax revenue and projects to other states.
Newsom has until the end of the month to either sign or veto the legislation. His office declined to comment because the bills are pending before the governor.
PCG•
