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.

• ⁠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.bills

• 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.

• 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, ​said its members were committed to responsible development but warned the measures could push projects to other states: "Legislation such as these create significant uncertainty and introduces potentially duplicative requirements ‌that make doing business in California an unattractive proposition for data centers and other industries," Khara Boender, a director ‌of government affairs for the group, said in a statement. "These are likely to further ⁠limit data center development in ‌California — an already declining ​market—which pushes job creation, clean energy deployment, and tax revenue to neighboring states."

(Reporting by Nichola Groom; Editing by Aurora Ellis and ‌Nick Zieminski)

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