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TechQuiet 3d · day 3

Newsom Signs Seven Bills Restricting California Data Center Development

Governor enacts nation's strongest protections against AI data center costs and environmental impacts as public opposition intensifies.

newest coverage 2d agosummary written 2d ago2 pieces Newswires

What to know

  • Newsom signed seven bills making California home to 'some of the nation's strongest data center ratepayer protections,' requiring facilities to cover their own grid connection and electricity costs rather than passing them to other ratepayers.
  • The legislation mandates water-usage disclosure by developers and ensures data centers undergo state environmental review, reversing Newsom's 2025 veto of water-reporting requirements as opposition intensified.
  • Public opposition is substantial: 73% of Californians oppose AI data center construction locally and 63% worry about environmental impacts, according to a July PPIC survey.
  • Tech companies and the Data Center Coalition opposed the bills as economically harmful; they passed largely on party-line votes in the Democratic-controlled legislature.

Gavin NewsomGavin Newsom California GovernorSen. Steve PadillaSen. Steve Padilla California State Senator (D-San Diego)Data Center Coalition Business advocacy groupGoogle and Microsoft Data center operators

Newsom Signs Seven Bills Restricting California Data Center Development
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How it unfolded 1 development · click the chart to see its coverage articles

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Sep 22yesterdaynow · 9:44 AM ET
  1. 1

    Data Center Coalition and tech companies oppose legislation

    Business groups including the Data Center Coalition—whose members include Google and Microsoft—opposed the bills, arguing they would prevent California from capitalizing on economic growth from data center construction. The bills passed largely on party-line votes in the Democratic-controlled legislature.

    “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.”
    — Governor Gavin Newsom, California Governor · source
  2. background

    Sen. Steve Padilla calls bills 'nation's strongest' data center protections — Senator Steve Padilla, who authored SB 886 and SB 887, characterized the legislation as stopping Big Tech from shifting costs to California families while ensuring local input and environmental compliance.

  3. background

    Newsom signs seven data center restriction bills into law — Governor Newsom signed seven bills imposing new restrictions on data center development. Senate Bills 886 and 2383 require the California Public Utilities Commission to create new power rates ensuring data centers cover their own grid connection and electricity costs. Senate Bill 887 prevents data centers from bypassing state-mandated environmental review. Assembly Bill 2469 prohibits local approval of data centers until developers disclose projected water usage.

  4. background

    PPIC survey shows 73% of Californians oppose local AI data center construction — A Public Policy Institute of California survey found that nearly three-quarters of Californians oppose construction of an AI data center in their area, and 63% expressed worry about environmental impacts.

  5. background

    Newsom vetoes water-reporting proposal for data centers — Governor Gavin Newsom vetoed a water-reporting proposal for data center development, citing a need to further understand impacts on data center businesses and consumers.