California tightens rules on AI data center energy and water use

Gavin Newsom signed a package of bills requiring AI data centers to pay for upgrades to the local energy grid. Gavin Newsom signed a package of bills requiring AI data centers to pay for upgrades to the local energy grid. California Gov. Gavin Newsomhas signed seven billsdesigned to prevent AI data centers from passing utility costs onto residents, as reported earlier bytheLos Angeles Times. The package of laws requires the California Public Utilities Commission to introduce a new rate classification for data centers, while forcing them to pay for upgrades to local power grids and water systems. Other bills included in the package will require proposed data centers to disclose their estimated water use to local governments, along with information about energy efficiency and drought planning. They must also meet certain energy, water, and fuel consumption requirements before qualifying for a streamlined approval process. Last week, Newsomsigned an executive order to speed up the creationof an AI “kill switch.” “While the Trump administration moves toward deregulation, communities are left to deal with the consequences — higher electricity demand, grid constraints, water use, and pollution,” Newsom says in the press release. “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.” A free daily digest of the news that matters most. This is the title for the native ad