Governor Gavin Newsom of California has enacted a series of seven legislative bills aimed at ensuring AI data centers contribute to improvements in local infrastructure. This initiative is designed to prevent utility costs from being transferred to Californians. The new laws require these data centers to bear the expense of upgrading both energy grids and water services in the communities they operate.
The legislative package mandates the California Public Utilities Commission to establish a new rate classification tailored for data centers. Furthermore, before receiving a streamlined approval, proposed data centers must fulfil criteria concerning energy efficiency, water and fuel consumption, and disclose projected water consumption and energy usage plans, as part of their drought contingency measures to local authorities.
Highlighting the importance of regulation, Gov. Newsom remarked that while federal policies under the Trump administration leaned towards deregulation, it is essential for California to safeguard its residents from any negative repercussions, such as increased power demand, water usage conflicts, and pollution. He emphasised that the new regulations will empower Californians, ensuring that the financial benefits reaped by data centers do not adversely impact the populace.
As part of a broader technology regulation strategy, last week also saw Gov. Newsom issue an executive order to expedite the establishment of an AI “kill switch,” reflecting the state’s proactive stance on technology governance.
Reporting based on coverage first published by theverge.com.