- Seven new California laws address the growth of data centers.
- Proposed data centers will face new water-use reporting requirements.
- Local governments and water suppliers will receive more information about water demand.
- Data centers would pay for upgrades needed to provide their water.
- The laws also address electricity costs and environmental review.
California is putting new rules around the rapidly growing data center industry, including requirements intended to give communities a clearer picture of how much water proposed facilities could use.
Gov. Gavin Newsom signed seven data center bills on September 21, 2026. Together, the laws address water supplies, electricity, land use and the costs associated with building the large facilities.
The Governor’s Office said the changes are intended to give local communities more information when deciding whether a proposed data center is a good fit.
Water Use Must Be Disclosed.
Two of the seven bills specifically address water.
Under the new laws, proposed data centers will be required to provide information to local governments and water suppliers about their expected water use, available supplies, water efficiency and drought planning.
That could give communities a better understanding of a project’s water demands before they decide whether to approve the development.
The Governor’s Office also said that if improvements are needed to provide water to a data center, the data center would pay for those upgrades.
The water-related measures signed by Newsom are Assembly Bill 2469, which concerns data center water-use disclosures, and Assembly Bill 2619, which concerns water resources and data centers.
Electricity Costs Are Also Addressed.
The package goes beyond water.
California’s new laws also address the large electricity demands associated with data centers. According to the Governor’s Office, data centers will pay for necessary grid upgrades rather than shifting those costs to other electricity customers.
The laws also require data centers to comply with California’s energy procurement requirements and bring new clean-energy supplies onto the electrical grid.
Several of the bills deal specifically with electricity reporting, rate structures and protections for other utility customers.
No Blanket Environmental Exemption.
California is also changing how data centers may qualify for faster environmental review.
Under the new laws, data centers will not receive a blanket exemption from environmental requirements.
Instead, a project seeking streamlined judicial review must demonstrate that it meets state standards involving energy, water and fuel consumption and that its development will not shift costs to utility customers.
The changes give communities additional information about a proposed project’s land, water and electricity demands as part of the decision-making process.
Seven Bills Signed.
The seven measures signed September 21 are Assembly Bills 1577
, 2383, 2469 and 2619 and Senate Bills 886, 887 and 1168.
They cover subjects ranging from data center reporting and water-use disclosures to electricity rates and environmental review.
Newsom said the state wants communities to have a larger role in decisions about the facilities.
“With these laws, we are ensuring that Californians remain in the driver’s seat,” Newsom said.
For water suppliers and local governments, part of that new information will involve a basic question that has become increasingly important as more data centers are proposed: how much water the facility will need, and what it will take to provide it.
