Data centers in California will have to report how much water and electricity they use. Governor Gavin Newsom signed seven bills on Monday that set rules for the industry.
The laws require more transparency about consumption, make data centers share the cost of grid connections, bring local communities into planning and protect households from rising power bills.
The bills
AB 1577, by Assemblymember Rebecca Bauer-Kahan, covers reporting. AB 2383, by Assemblymember Rick Chavez Zbur, deals with electricity use, while AB 2469 and AB 2619, by Assemblymember Diane Papan, address water.
State Senators Steve Padilla and Jerry McNerney carried SB 886 on protecting ratepayers, SB 887 on exemptions for geothermal projects and SB 1168 on rates for data centers. Padilla said the bills ensure that "datacenters pay for energy grid connection, for electricity generation costs, and for a larger share of wildfire mitigation and liability costs."
A turnaround in a year
In October 2025, Newsom vetoed a similar bill, AB 93, arguing that its reporting requirements were too rigid for businesses.
This time he struck a different tone. "While the Trump administration moves toward deregulation, communities are left to deal with the consequences," he said, listing higher electricity demand, grid constraints, water use and pollution.
California is not alone. According to The Register, more than 30 state legislatures introduced data center bills in the second quarter of 2026, and 16 states are considering outright bans.
