Gov. Gavin Newsom has vetoed legislation that would have required data centers to report how much water they use.
New data centers have been rapidly proliferating in California and other western states as the rise of artificial intelligence and growing investments in cloud computing drive a construction boom. The centers, full of equipment, generate lots of heat and can use large quantities of water to cool their servers and interiors. Many companies don’t reveal how much they use.
Assembly Bill 93, introduced by Assemblymember Diane Papan (D-San Mateo), would have required new data centers to disclose their expected water use when they apply for a business license and would have required all to report their water consumption annually.
In a message explaining his decision Saturday, Newsom said the widespread adoption of AI “is driving an unprecedented demand for data center capacity throughout the nation.”
“As the global epicenter of the technology sector, California is well positioned to support the development of this critically important digital infrastructure in the state,” Newsom wrote. “I am reluctant to impose rigid reporting requirements about operational details on this sector without understanding the full impact on businesses and the consumers of their technology.”
The bill was opposed by business groups including the Data Center Coalition.
Much of the data center construction boom is taking place in arid states, including California, Arizona and Texas, where strains on water have been mounting amid dry conditions and rising temperatures.
Papan said the bill was “a reasonable, transparent approach to understanding and managing the massive water demand driven by AI,” and that she will keep trying to “strike the right balance between technological innovation and sustainable resource management.”
In other water news, Newsom signed:
- Senate Bill 72, which requires the Department of Water Resources to set long-term water targets including, within 15 years, having “additional water, water conservation, or water storage capacity” totaling 9 million acre-feet — nearly three times the water used annually across six counties in Southern California. Newsom said in his signing message that going forward, the state agency will have to “analyze current and future water needs trends” when updating California’s water plan.
- Senate Bill 31, a bill intended to help the state deal with worsening droughts and the effects of climate change by increasing the use of recycled water. Introduced by Sen. Jerry McNerney (D-Pleasanton), it loosens rules to allow parks to use more reclaimed water and ensure homeowners’ associations don’t have to lay new pipes if they want to use it.
- Assembly Bill 1466 permits courts, in disputes over groundwater, to enter judgments separately for well owners that pump small quantities of water. Assemblymember Gregg Hart (D-Santa Barbara), the bill’s sponsor, said it will enhance California’s groundwater sustainability efforts and protect “small family farmers that face expensive litigation.”
- Senate Bill 394 is intended to combat theft of water by enabling local agencies to crack down on those who steal from fire hydrants with increased fines and new enforcement powers. The bill was introduced by Sen. Ben Allen (D-Santa Monica) and supported by Las Virgenes Municipal Water District and the Assn. of California Water Agencies. Las Virgenes, which supplies about 70,000 customers in Agoura Hills, Calabasas and other communities, said it has lost an estimated 45 million gallons of water in recent years because of theft from hydrants. Supporters of the bill said the theft has reached a point where thieves steal for commercial use, including construction, landscaping or farming. Now they could face an initial fine of $2,500, and up to $10,000 for a repeat offense.
