Newsom signs seven bills to make data centers disclose energy, water use

For years, data centers have expanded into communities across the US, prompting protests over their potential strain on power grids and water systems. A key frustration has been the lack of basic information: it's difficult to see exactly how much electricity or water these facilities consume.

California's new laws attempt to close that gap. The seven bills signed by Gov. Gavin Newsom go beyond disclosure, directing the California Public Utilities Commission to create separate power rates for data centers to recover grid connection costs, and removing categorical exemptions from environmental review. But significant gaps remain. Water disclosures are only required at permitting or licensing, not annually, so they may not reflect actual yearly usage or whether companies are meeting sustainability goals.

The stakes hinge on whether the data will be enough to determine which scenario is unfolding: one where data centers drive up costs for other ratepayers, or one where they bring bills down. As Mark Specht of the Union of Concerned Scientists notes, it's impossible to say definitively now. But the laws signal to the industry that lawmakers and the public are paying attention—and that data centers are something that can be regulated.