California Governor Gavin Newsom has signed a package of bills that places new requirements on AI data centers operating in the state. Under the legislation, those facilities must cover the cost of upgrades to the local energy grid. The package also imposes new disclosure and efficiency standards on proposed data centers.
The bills require developers of proposed data centers to tell local governments how much water they expect to use. They must also provide information about energy efficiency and drought planning. In addition, the facilities have to satisfy specific energy, water and fuel consumption requirements before they can qualify for a streamlined approval process.
Newsom framed the laws as a way to keep California residents in control of the effects of data center growth. He said that while the Trump administration moves toward deregulation, communities are left to handle the results, including higher electricity demand, grid constraints, water use and pollution. According to Newsom, the new laws are meant to ensure that Californians remain in the driver's seat and that data center operators do not profit at their expense.
The signing follows a separate executive order Newsom issued last week. That order is intended to speed up the creation of an AI "kill switch." The two actions together represent the state's latest attempt to address the expanding footprint of AI infrastructure.
California's move comes as other states weigh their own responses to data centers. On September 18, Virginia Governor Glenn Youngkin created an AI task force and moved to restrain data centers, as reported by Lauren Feiner. Justine Calma reported on September 16 that the AI data center e-waste problem is huge and getting bigger.
The bills add California to a growing list of jurisdictions examining how AI computing facilities affect power grids, water supplies and local communities. Data centers supporting AI workloads have drawn attention for their resource demands, and the new state requirements target those demands directly. The package ties grid upgrade payments, water disclosure and efficiency standards to the approval process for new facilities.
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