California tightens rules on AI data center energy and water use

California Governor Gavin Newsom has signed seven bills aimed at preventing AI data centers from passing utility costs onto residents. The laws require the California Public Utilities Commission to create a new rate classification for data centers, compelling them to fund upgrades to local power grids. Other bills in the package mandate that proposed data centers disclose their estimated water usage to local governments, along with information on energy efficiency and drought planning. They must also adhere to specific standards for energy, water, and fuel consumption.