California · US Senate · Donald Trump · The Register
California tightens datacenter rules on water and power
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Public pushback puts bit barn resource use under the microscope.
Key facts
- The watchdog group estimates that at least 45 projects worth roughly $68 billion were blocked or delayed in the second quarter of 2026
- SB 886 by Senator Steve Padilla (D-San Diego) and Senator Jerry McNerney (D-Pleasanton)
- According to the National Conference of State Legislatures, 16 states are currently considering whether to ban datacenter construction
- AB 2469 by Assemblymember Diane Papan (D-San Mateo)
Summary
California Governor Gavin Newsom on Monday signed seven state bills that require datacenter operators to report more info about their operations, and to involve communities as they plan future facilities. The California Assembly Bills (AB) and Senate Bills (SB) signed by Newsom require greater disclosure of datacenter water and electricity use, address who pays for grid connections and other power infrastructure, and introduce rules covering electricity rates, water resources, and environmental review. California state senator Steve Padilla, who authored two of the bills, said the bills will ensure that datacenters pay for energy grid connection, for electricity generation costs, and for a larger share of wildfire mitigation and liability costs. The governor's office cited the Trump administration's dismissal of Americans' concerns about AI and datacenters to emphasize Newsom's willingness to constrain an industry of major significance to California's economy.