California governor signs seven-bill package targeting data center energy and water use

Type: Development · Technology: Data Center · Country: United States · Announced: 2026-09-23

Governor Gavin Newsom signed seven bills into law on September 23, 2026, aimed at shifting infrastructure costs from residential ratepayers to data center operators. Three bills—SB 1168, SB 886, and AB 2383—require data centers to absorb the cost of their energy use and utility infrastructure upgrades, with new rate classes impacting facilities of 25MW or more. Three other bills—AB 1577, AB 2619, and AB 2469—mandate disclosure of electric infrastructure costs, water use reporting under penalty of perjury, and estimated water use during business license applications, respectively. The final bill, SB 887, removes data centers' eligibility for blanket environmental review exemptions while offering fast-tracked approval for facilities meeting state water and energy conservation standards. The reporting mandate to the California Energy Commission excludes facilities with electrical capacity below 10MW, a threshold raised from the original 500kW during committee. These laws ensure that data center operators, not ratepayers, bear the costs of grid connection and infrastructure upgrades.

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