California Gov. Gavin Newsom signed seven data center bills this week, including measures requiring facilities to cover rising electricity costs and giving local governments water-use data. The package aims to protect ratepayers and the environment.
A UC Riverside and Next10 report said California’s electricity consumption rose 95%, from 5.54 to 10.82 terawatt-hours, between 2019 and 2023, attributing the increase to data center expansion. It reported that California data centers used nearly 13.2 billion gallons of water in 2023.
R Street Institute fellow Spence Purnell called the package overregulation, saying data centers were being singled out, but said transparency measures on water use and environmental impacts were appropriate. A California Energy Commission official said the laws balance data center growth with environmental protections and safeguards against utility-bill spikes.
