Wednesday September 23, 2026
KQED —
Data center developments in California will face new regulations governing their electricity and water usage.
Data center developments in California will face new hurdles under legislation signed into law by Gov. Gavin Newsom on Monday amid rising concerns about the facilities at the heart of the nation’s artificial intelligence boom.
The seven bills signed by Newsom include provisions aimed at preventing data centers from passing on their electricity costs to other ratepayers and a new requirement for developers to disclose their projected water usage.
“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.
The governor vetoed the water-reporting proposal last year, citing a need to further understand impacts on data center businesses and consumers. Since then, opposition to data centers has intensified; local governments across California are considering bans or moratoriums on the projects, and Newsom has promised his administration would be “leaning in” on regulations.
Two bills signed by Newsom, Senate Bill 886 and Assembly Bill 2383, would require the California Public Utilities Commission to create new power rates for data centers to cover the cost of connecting the facilities to the grid and providing them with electricity.