California Governor Gavin Newsom has signed the most comprehensive data center laws in the nation, providing communities more control over water, electricity, and land use, his office announced Tuesday.
The new laws are intended to protect California's innovation economy while giving residents a stronger voice on proposed projects in their communities, according to the Governor's Press Office.
Senator Jerry McNerney (D-Pleasanton) said his SB 1168 addresses concerns about rising utility bills driven by data center growth. "Governor Newsom's signing of my SB 1168 helps ensure that data centers absorb the costs of their energy use and any utility upgrades they require, not ratepayers," he said.
Senator Steve Padilla (D-San Diego) called the measures some of the nation's strongest ratepayer protections. "Big Tech keeps promising to be good neighbors and these laws now make those promises legally enforceable," he said, adding he was "incredibly grateful" to Newsom for signing "these nation-leading protections for ratepayers and our environment into law."
Assemblymember Rebecca Bauer-Kahan (D-Orinda) thanked the governor for signing AB 1577, saying it gives the state and local communities "the transparency needed" to understand data centers' growing energy demands and plan for growth. Assemblymember Rick Chavez Zbur (D-Hollywood) said AB 2383 ensures large energy users "pay their fair share of the costs needed to serve them" and protects ratepayers from unfair cost shifts.
Assemblymember Diane Papan (D-San Mateo) said the bills are "essential for the future of water management in California" and position the state to "balance innovation and sustainability."
Mark Toney, executive director of TURN, said the measures protect ratepayers from subsidizing data centers' energy consumption and require them to pay upfront for extra infrastructure. Sam Uden of Net-Zero California said the package shows "we don't need moratoriums if we have the leadership to put strong protections in place."
Linda Serizawa of the California Public Advocates Office said the laws provide "much-needed transparency requirements and ratepayer protections." Victoria Rome of the Natural Resources Defense Council said the laws "set a model for the nation," while Andy Wunder of E2 said they keep California "at the forefront of technological innovation."