Gov. Gavin Newsom signed two laws Monday that feature "some of the strongest ratepayer protections and environmental protections from data center costs in the country," according to the San Diego- area senator who sponsored them.
Sen. Steve Padilla, D-San Diego, introduced Senate Bills 886 and 887 and said the laws will ensure data centers pay all required transmission infrastructure upgrade costs for connection to the power grid, cover all generation costs and be responsible for a larger share of wildfire mitigation and liability costs than what facility operators currently pay.
According to Padilla, the Senate voted 28 to 10 in favor of SB 886, while the Assembly passed it 62 to 7. Padilla's office added SB 887 passed the Senate by a vote 30 to 8, while
the Assembly approved it 59 to 11.
The ratepayer protections will "stop Big Tech from sticking California families with the bill for their data centers while ensuring all local voices have a say on these projects and they comply with our air, water and climate standards," Padilla said in a statement. "Big Tech keeps promising to be good neighbors and these laws now make those promises legally enforceable. No more saying one thing in the White House and doing the opposite in our local communities."
President Donald Trump recently criticized local efforts to impose restrictions on data center, saying they are vital to the growing artificial intelligence industry.
Padilla said the largest proposed data center in California would be in his district, "with the developer cutting a backroom deal to circumvent critical environmental review without any community input."
According to a June CalMatters report, data center developers in Imperial County "cleared a major hurdle" in April, after the Board of Supervisors there approved a plan to combine several land parcels for the 1 million-square-foot facility.
Parent company Imperial Valley Computer Manufacturing described the project as "designed exclusively for advanced artificial intelligence and machine learning operations," according to the CalMatters report.
Facing considerable public backlash, supervisors in mid-June declared a 45-day moratorium on data centers and formed a public commission to advise the county on zoning policy related to data centers.
In response, developer Sebastian Rucci said he would seek a temporary restraining order against the moratorium, according to Cal Matters.
A representative of Imperial Valley Computer Manufacturing was not immediately available for comment on Monday.
Two consumer advocates have praised new state laws regulating data centers, according to Padilla's office.
Mark W. Toney, executive director of The Utility Reform Network, said the measures "protect ratepayers from subsidizing the significant energy consumption of data centers."
The laws also mean data centers will "pay upfront for the extra infrastructure that must be built to operate them, and pay their fair share for wildfire mitigation and other ratepayer-funded programs," Toney added.
Sam Uden, co-founder and managing director at Net Zero California, said state lawmakers "have met the moment with a robust set of protections."
"Managing data center-driven load growth is one of the most consequential energy issues facing the nation today," Uden said. "These bills also lay a foundation to turn data center growth into an opportunity: bringing new energy supply onto the grid and strengthening reliability."
"We don't need moratoriums if we have the leadership to put strong protections in place while capturing the broader economic and technological benefits of data centers," he said.
