California lawmakers pass slew of data center bills on final night of session
California regulations for data center electricity rates
California lawmakers pass slew of data center bills on final night of session
SACRAMENTO, Calif. - The California State Legislature wrapped up its legislative session late Monday night, voting on multiple bills aimed at regulating data centers across the state.
Data center rates
What we know:
Rendering of proposed data center in Pittsburg.
Among the key measures passed was Senate Bill 886, authored by state Sen. Steve Padilla, (D-San Diego) which requires the California Public Utilities Commission—the state agency overseeing utility cost approvals—to establish a new electricity rate specifically for data centers. The rate structure is designed to prevent the massive energy costs of facility operations from being passed onto everyday consumers.
Follow-up legislation, including SB 887, will require data centers to undergo an environmental impact report. A pair of Assembly bills passed during the session will force data centers to disclose their energy and water usage, while additional legislation ensures that data center operators pay to help maintain the electricity grid as they become some of its largest consumers.
In addition, the California Legislature approved Sen. Jerry McNerney’s SB 1168, (D-Pleasanton), which is designed to protect Californians from skyrocketing utility rates caused by data centers.
The bill would direct the CPUC to examine data centers’ use of excessive amounts of energy and ensure that Californians don’t face rate hikes as a result.
In the Assembly, a pair of bills would require data centers to report their energy and water use. Another bill makes sure data centers will pay to help upkeep electricity grids as they will become one of its biggest users.
Defining political issue
Big picture view:
Political analysts believe this is just the start of the conversation with data centers having the potential to be the defining issue in upcoming elections.
"There's a whole bunch of issues still around data centers that are making politicians a little wary as this issue catches fire across the nation," said Sonoma State University political science professor David McCuan.
Newsom and Trump
What they're saying:
San Jose residents push back on new AI data centers during city 'listening session'
San Jose city leaders heard directly from the public as they work to establish new guidelines for regulating future artificial intelligence data centers across the city.
The package of bills comes as public debate over the facilities intensifies across the political spectrum.
"We have a lot of data center bills, and the reason I bring it up is because if we are going to do it, we are going to do it right," California Gov. Gavin Newsom said. "The president has a 'let it rip' mindset. He's not doing the industry any service by turning his back on public opinion. It’s now a bipartisan issue... that’s why I think you’re seeing states lean [in]."
Newsom's comments follow a social media post yesterday from President Donald Trump addressing the issue.
"The only reason communities throughout the USA should not want data centers is if they want to end up being backwards and poor," President Trump posted.
The legislative action comes as residents across Northern California actively oppose new developments.
Bay Area protests
Local perspective:
Oakland councilmember and developer say proposed AI campus would be distinct from data center
Oakland City Councilmember Carroll Fife and developer Colin Behring spoke to media, saying they wanted to dispel rumors about a proposed downtown AI center. They say the project, which has yet to before the council, would be much smaller in scope than data centers that have drawn scrutiny. But a policy director at an East Bay group has concerns.
Bay Area communities—including Pittsburg, Gilroy, Oakland, Oakley, San Jose, and Brentwood—have seen ongoing local protests against proposed data centers.
California currently ranks third in the nation for its total number of data centers, though industry growth in the state has slowed in comparison to other parts of the country.
The Source: The information for this story comes from California bills and lawmakers, Gov. Gavin Newsom, political science professor David McCuan and a social media post from Donald Trump.