California tightens rules on AI data center energy and water use
Gavin Newsom signed a package of bills requiring AI data centers to pay for upgrades to the local energy grid.
by Emma Roth
Sep 21, 2026, 8:29 PM UTC
Image: Sandy Huffaker / AFP via Getty Images
Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.
California Gov. Gavin Newsom has signed seven bills designed to prevent AI data centers from passing utility costs onto residents, as reported earlier by the Los Angeles Times. The package of laws requires the California Public Utilities Commission to introduce a new rate classification for data centers, while forcing them to pay for upgrades to local power grids and water systems.
Other bills included in the package will require proposed data centers to disclose their estimated water use to local governments, along with information...
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