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California Sends Data Center Transparency and Rate Bills to Newsom’s Desk

The package forces public disclosure of data center water use under penalty of perjury.

Overview

  • Lawmakers passed a coordinated package of data center measures late Monday night and delivered the bills to Gov. Gavin Newsom, who has until the end of September to sign or veto them.
  • One bill requires operators to report estimated or actual water sources and use under penalty of perjury when seeking or renewing permits or business licenses, and another bars local approvals unless developers disclose water plans and pay for needed infrastructure.
  • Senate Bill 886 and companion measures direct the California Public Utilities Commission to design special electricity rates and require data centers to contribute to grid costs so their large power draws do not raise bills for ordinary customers.
  • The package passed largely along party lines and drew strong opposition from industry groups that say data centers are being singled out, while some local governments and water agencies warned about added permitting burdens.
  • Experts and advocates say disclosure alone may not be enough because many small counties and water districts lack staff to analyze data, which could lead to calls for state guidance and influence where future facilities are built.