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California Legislature Passes Two Watered-Down Bills to Regulate Data Center Water Use, Energy Costs

California bills require data centers to disclose water use to suppliers and allow regulators to assess energy cost shifts, but with reduced enforcement and limited public transparency.

  • California lawmakers passed two reduced bills aimed at regulating data center water use and energy costs, but they fell short of initial goals to regulate these centers more strictly.
  • Senate Bill 57 allows regulators to assess if costs from data centers shift to other customers, but it lacks specific protections for consumers that were originally intended.
  • Assembly Bill 93 requires data center operators to disclose estimated water usage to their suppliers, although public access to this information remains unclear.
  • Concerns about water consumption in data centers have led to regulatory actions across multiple states, reflecting the growing demand for AI technologies.
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California Legislature passes two watered-down bills to regulate data center water use, energy costs

California lawmakers started the year signaling they were ready to get tough on data centers, aiming to protect the environment and electricity ratepayers.

·United States
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Cal Matters broke the news in Sacramento, United States on Thursday, September 25, 2025.
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