California governor signs broad data center oversight bill package

California Governor Gavin Newsom has signed seven bills aimed at regulating the fast-growing data center industry, with a focus on electricity costs, water use, and local oversight. The legislation requires data centers to disclose information about electricity use, water consumption, land use, and workforce needs, while granting local communities more insight into proposed projects.

Newsom emphasized that these measures ensure Californians remain in control and prevent the financial burden of new power generation and grid upgrades from being passed onto other ratepayers. The legislation will also require data centers to comply with the state’s energy procurement requirements, potentially bringing new clean-energy supplies onto the grid.

The Data Center Coalition, an industry trade group, has expressed concerns that the bills unfairly target data centers and may push projects to other states.

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