California puts AI data centres on the hook for grid and water upgrades
Governor Gavin Newsom has signed seven bills requiring AI data centres to fund local infrastructure, disclose resource use and meet consumption standards.
California Governor Gavin Newsom has signed seven bills aimed at preventing AI data centres from shifting the cost of expanded electricity and water demand onto residents.
The legislation requires data centres to pay for upgrades to local power grids and water systems. It also directs the California Public Utilities Commission to create a new rate classification for data centres.
Proposed facilities will have to disclose projected water use to local governments, along with information about energy efficiency and drought planning.
The measures also set energy, water and fuel-consumption requirements for facilities seeking streamlined approval. The source does not specify the thresholds or when the bills take effect.
Newsom said the laws respond to rising electricity demand, grid constraints, water use and pollution linked to expanding AI infrastructure. He said the measures were intended to ensure companies profiting from data centres do not impose those costs on Californians.
