California, September 28, 2025
News Summary
California’s efforts to regulate data centers to mitigate environmental impacts have stalled, with only two of four proposed bills making it to the governor’s desk. The significant amendments diluted the original intentions of these measures, leaving concerns about water and energy usage amidst increasing demand from tech companies. The ongoing discussions highlight the need for more effective regulation as data centers play a growing role in the state’s energy and water consumption landscape.
California lawmakers aimed to implement stricter regulations on data centers this year to address environmental and energy concerns, but after nine months of legislative efforts, insufficient progress has been made. Only two out of four proposed bills designed to regulate data center operations have made it to Governor Gavin Newsom’s desk, with these measures substantially weakened in their original scope and objectives.
Two notable bills failed to advance in the Legislature. One bill aimed to mandate data centers to disclose their power usage, while the other would have incentivized these centers to adopt cleaner energy practices. In contrast, the current bills awaiting the governor’s approval include Senate Bill 57, which requires data center operators to disclose their water use but limits public access to this data. The second bill, Assembly Bill 93, mandates data centers to inform water suppliers of their estimated water consumption as part of business license applications or renewals and encourages guidelines aimed at improving water use efficiency.
The role of data centers in the digital landscape has escalated, with their operations tied to major platforms like TikTok and Amazon. The surge in demand for artificial intelligence technologies, particularly systems like ChatGPT, has driven an increase in data center proliferation. However, this growth comes with environmental implications, as data centers require substantial water for cooling their components like semiconductors. This is particularly concerning in California, where water reservoir stress and escalating electricity costs for residential customers have become critical issues.
California hosts one of the largest concentrations of data centers globally, with many ongoing projects following a reported 40% increase in hookup requests from Pacific Gas and Electric (PG&E). In response to growing demand, the California Public Utilities Commission streamlined the application process for data center projects in July. However, amendments made to Senate Bill 57 have shifted its primary focus from safeguarding energy customers from infrastructure costs linked to data centers to merely evaluating potential cost impacts on other customers.
The Utility Reform Network, initially supportive of Senate Bill 57, has since expressed dissatisfaction with the bill’s effectiveness following significant changes influenced by lobbyists representing data center interests. PG&E, which initially opposed the bill, retracted its opposition after the recent modifications.
In California’s drought-prone environment, concerns about water usage in data centers are amplified. A Stanford study has identified California as a prime location for future data center projects, particularly in regions struggling with high water stress. Environmental advocates contend that lack of transparency regarding data center water usage hampers community understanding and response to local impacts. Critics argue that the proposed legislation has been diluted to benefit data center operators, potentially compromising public access to critical water usage data.
The increased energy demands of data centers present challenges for California’s grid, with projections indicating that the energy consumption from these facilities could equate to the power needs of millions of homes by 2030. Local governments and communities are increasingly engaging in discussions about the environmental impact of data centers, emphasizing the need for transparency and fairness throughout the planning process.
Expansions of data centers have led to controversies surrounding water consumption, air quality, and electricity loads, posing possible public health risks. Concerns over the use of diesel generators in data centers, known for significantly contributing to greenhouse gas emissions, add another layer of complexity to the issue. With the growing divide between technology advocates and environmentalists, there is escalating tension regarding how to balance infrastructure expansion with climate conservation goals.
Experts highlight the necessity for innovative solutions from the data center industry to meet the pressing needs for power and resources amid California’s changing climate.
FAQ
What bills were proposed for regulating California data centers this year?
California lawmakers proposed four bills aimed at regulating data centers, but after nine months, only two reached the governor’s desk, and both were significantly weakened.
What are the current bills awaiting Governor Gavin Newsom’s signature?
The current bills are Senate Bill 57, which mandates water use disclosure, and Assembly Bill 93, requiring data centers to inform water suppliers of their estimated water consumption during license applications or renewals.
Why are data centers becoming a concern for California?
Data centers are concerning due to their significant electricity and water usage, impacting environmental sustainability and raising electricity costs for residents.
What has caused the increase in data center proliferation?
The demand for artificial intelligence technologies, particularly systems like ChatGPT, has surged, leading to more data centers being established.
What challenges do California’s data centers present to the power grid?
Projections indicate that energy demands from data centers could equivalate to the needs of millions of homes by 2030, posing challenges for California’s power grid.
What is the current status of Senate Bill 57?
Senate Bill 57 has been amended to reduce its focus on protecting energy customers from infrastructure costs related to data centers and has generated criticism regarding its effectiveness.
Key Features of Data Center Impact in California
| Feature | Details |
|---|---|
| Legislation Status | Out of 4 proposed bills, 2 reached the governor’s desk, both weakened. |
| Current Bills | Senate Bill 57 (water use disclosure) and Assembly Bill 93 (reporting to water suppliers). |
| Environmental Concerns | High water consumption and energy demands impact state resources. |
| Drought Issues | Increased scrutiny on data centers’ water usage amid California’s drought. |
| Grid Projections | Data centers’ energy needs could equal millions of homes by 2030. |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: California Legislature Passes Two Watered-Down Bills to Regulate Data Center Water Use
- Wikipedia: Data Center
- LAist: AI Supercomputers Need Lots of Electricity
- Google Search: California Data Centers Regulation
- Daily Journal: California’s Data Centers Face a Climate Cooling Dilemma
- Encyclopedia Britannica: Data Centers
- Capital & Main: As California AI Data Centers Grow, So Does Dirty Energy
- Google News: California Data Centers Energy Impact
Author: STAFF HERE MISSION VIEJO WRITER
MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, Orange 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 Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
