Finally something California and Texas can agree on: regulating data centers

California and Texas have both taken steps to regulate data center development, despite their political differences. California Governor Gavin Newsom signed a package of new laws requiring data centers to disclose electricity and water use, and making them ineligible for environmental exemptions. The laws aim to prevent rising energy costs from being passed onto consumers.

Meanwhile, Texas Governor Greg Abbott has paused new permits for data center development while the Electric Reliability Council of Texas and the Texas Water Development Board conduct audits. Both states are trying to address concerns over water use, energy prices, and grid constraints associated with data centers. Despite their differences, the two states have found common ground on the issue, as data centers have become a nonpartisan political concern.

Businesses in the data center industry have criticized the new regulations, warning that they could cause significant uncertainty and drive development to other states.