California Passes New Laws Regulating AI Data Center Energy and Water Use
On September 21, 2026, California Governor Gavin Newsom signed seven bills aimed at regulating the energy and water consumption of artificial intelligence (AI) data centers. The new laws require these facilities to pay for necessary upgrades to local power grids and water systems, preventing them from shifting utility costs onto residents. Additionally, proposed AI data centers must disclose their estimated water use, along with details on energy efficiency and drought preparedness. The legislation also mandates that data centers meet specific criteria related to energy, water, and fuel consumption before they can qualify for a streamlined approval process. These measures are part of broader efforts by Newsom’s administration to address the environmental impact of AI infrastructure while ensuring local communities benefit from such developments rather than bear their costs. Newsom emphasized in a press release that these laws aim to keep Californians in control and prevent data center operators from profiting at public expense, particularly as energy demand rises due to increased reliance on large-scale computing operations.
Topics: AI data centers energy policy government regulation water use