California tightens datacenter rules on water and power
Public pushback puts bit barn resource use under the microscope
California Governor Gavin Newsom has signed seven state bills to tighten datacenter rules on water and power usage. The bills require datacenter operators to report more information about their operations and involve communities in planning future facilities. They cover reporting on water and electricity use, grid connections, electricity rates, water resources, and environmental review.
Senate Bill (SB) 886 and Assembly Bill (AB) 2469, authored by Senator Steve Padilla and Assemblymember Diane Papan respectively, specifically address water use disclosures for datacenters. The governor cited the Trump administration's disregard for concerns about AI and datacenters to emphasize his commitment to regulating the industry.
The new rules aim to ensure datacenters pay for energy grid connections, electricity generation costs, and a larger share of wildfire mitigation and liability costs. The bills are part of a broader trend, with 16 states considering datacenter bans and many states exploring some form of regulation.
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