Newsom Signs 7 Bills Making AI Data Centers Pay Grid and Water Upgrade Costs
Updated
Updated · The Verge · Sep 21
Newsom Signs 7 Bills Making AI Data Centers Pay Grid and Water Upgrade Costs
3 articles · Updated · The Verge · Sep 21
Summary
Seven new California laws require AI data centers to cover local power-grid and water-system upgrade costs instead of shifting those expenses onto residents.
The package also orders the California Public Utilities Commission to create a separate rate class for data centers, tightening how their utility charges are handled.
Proposed facilities must disclose expected water use, energy efficiency and drought plans to local governments, and meet energy, water and fuel-use standards to qualify for streamlined approval.
Newsom cast the measures as a response to rising electricity demand, grid strain, water use and pollution from AI infrastructure, coming a week after he signed an executive order to speed an AI "kill switch."