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California lawmakers reach deal in high-stakes fight over regulating data centers
Los Angeles Times • • nation
Key Points:
- California lawmakers reached a compromise on legislation to regulate energy use by data centers, aiming to protect consumers from rising electricity costs and monitor the centers' significant energy and water consumption.
- The legislation mandates the California Public Utilities Commission to establish special electricity rates and updated rules for data centers, including costs for power infrastructure upgrades, amid debates over who should set these regulations.
- The data center industry, represented by major tech companies, cautioned that stringent regulations and California's high energy costs could deter new data center development, risking job losses and reduced tax revenues for municipalities.
- Public opposition is strong, with concerns about water use, pollution, and increased utility bills; several California cities have enacted moratoriums or bans on data centers in response.
- Environmental and utility reform advocates had mixed reactions to the legislation, praising cost protections but expressing concerns over lack of clean energy requirements and interim utility agreements with data centers.
