Data centers are black boxes, but California wants to change that

California enacted a package of seven bills designed to shed light on how data centers affect local electricity systems and water supplies. Lawmakers directed the California Public Utilities Commission to develop separate power rates for data centers under SB 886, AB 2383, and SB 1168 so connection and grid costs tied to these large facilities aren’t shifted onto other customers. AB 2383 also pushes data centers toward greater use of renewable energy.

Lawmakers also moved to increase visibility into resource use. AB 1577 requires monthly reporting of data centers’ energy consumption beginning next year, while AB 2619 and AB 2469 impose water disclosure requirements related to permit and business license applications. AB 2469 additionally makes data center operators responsible for paying for infrastructure upgrades needed to serve them. SB 887 removes categorical exemptions for data centers under the California Environmental Quality Act, making them subject to environmental review.

Advocates and researchers have long complained that basic facts about data center electricity and water use were hard to obtain. The Union of Concerned Scientists’ Mark Specht said inadequate public data has made it difficult to judge whether data centers are raising utility costs or straining supplies. Academic researchers in California reported being unable to obtain water-use figures from local providers, who cited privacy rules, and noted few data centers had public environmental impact reports.

The bills do not close every transparency gap. Water disclosures required by AB 2619 and AB 2469 apply at permit or licensing stages, so they may not provide continuous, year-to-year consumption figures and could miss seasonal variations. Supporters say the measures are an important first step to ensure communities, scientists, and regulators can track growth in data center demand and its effects on local infrastructure and resources.