California governor signs broad data center oversight bill package

Sept 21 (Reuters) – California Governor Gavin Newsom on Monday signed seven bills aimed at regulating the fast-growing data center industry, imposing new requirements on electricity costs, water use and local oversight as communities push back against a surge in AI-linked development.

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• The legislation requires data centers to disclose information about electricity use, water consumption, land use and workforce needs, while giving local communities more information to assess proposed projects.

• The measures are designed to prevent the cost of new power generation and grid upgrades needed for data centers from being shifted onto other ratepayers.

• “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.

• California said the legislation will require data centers to comply with the state’s energy procurement requirements and help bring new clean-energy supplies onto the grid.

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• The measures come amid growing concern nationwide over the impact of data centers on electricity demand, water resources and local infrastructure as technology companies race to expand artificial intelligence capabilities.

• The rapid expansion of AI data centers has sparked resistance in California and elsewhere, with residents and advocacy groups raising concerns about electricity bills and pollution associated with the facilities.

• The Data Center Coalition, an industry trade group, was not immediately available for comment. The group has said previously that the bills unfairly single out data centers rather ​than other large industrial and commercial electricity users, and warned the measures could push projects to other states.

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(Reporting by Nichola Groom; Editing by Aurora Ellis)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published September 21, 2026 at 2:48 PM.