Overview
- Gov. Gavin Newsom signed seven bills Monday that require data centers to disclose electricity and water use, follow state energy procurement rules, pay for certain grid upgrades, and lose eligibility for some fast-track environmental exemptions.
- Texas Gov. Greg Abbott directed the Texas Commission on Environmental Quality to halt all data-center permits Monday until audits by ERCOT, the Public Utility Commission and the Texas Water Development Board verify grid and water impacts.
- Regulators expect ERCOT’s comprehensive audit to finish in December and asked TCEQ to report back to the governor by Oct. 19, creating a near-term compliance timetable for projects seeking approvals.
- Public opposition and local actions have already delayed or blocked nearly $200 billion in proposed projects this year, and industry groups warn the new rules could push investment and jobs out of affected states.
- Lawmakers and regulators say the changes aim to protect ratepayers and local water supplies by making developers cover infrastructure costs and by forcing clearer data on resource use, with implementation and legal challenges likely next.