California Enacts Legislation on AI Data Center Energy and Water Use

<figure> <img alt="A data center protest in Imperial, California " src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/gettyimages-2286055476.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" /> <figcaption> </figcaption> </figure> <p class="wp-block-paragraph">California Governor Gavin Newsom has signed seven bills aimed at regulating AI data centers to prevent them from passing utility costs onto residents, according to a report by the <em>Los Angeles Times</em>. The legislation mandates that the California Public Utilities Commission create a new rate classification for data centers and requires these centers to finance upgrades to local power grids and water systems.</p> <p class="wp-block-paragraph">Additionally, the new laws will obligate proposed data centers to disclose their estimated water usage to local governments, along with details regarding energy efficiency and drought planning. They will also need to comply with specific standards related to energy, water, and fuel consumption.</p> <p><a href="https://www.theverge.com/ai-artificial-intelligence/998453/california-ai-data-center-bills">Read the full story at The Verge.</a></p>