AINewsPolicyCalifornia tightens rules on AI data center energy and water useGavin Newsom signed a package of bills requiring AI data centers to pay for upgrades to the local energy grid.Gavin Newsom signed a package of bills requiring AI data centers to pay for upgrades to the local energy grid.by Emma RothSep 21, 2026, 8:29 PM UTCShareGiftImage: Sandy Huffaker / AFP via Getty ImagesPart OfAll the latest updates on AI data centerssee all updates Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.California Gov. Gavin Newsom has signed seven bills designed to prevent AI data centers from passing utility costs onto residents, as reported earlier by the Los Angeles Times. The package of laws requires the California Public Utilities Commission to introduce a new rate classification for data centers, while forcing them to pay for upgrades to local power grids and water systems.Other bills included in the package will require proposed data centers to disclose their estimated water use to local governments, along with information about energy efficiency and drought planning.
They must also meet certain energy, water, and fuel consumption requirements before qualifying for a streamlined approval process. Last week, Newsom signed an executive order to speed up the creation of an AI “kill switch.”RelatedGavin Newsom is pushing for an AI kill switch“While the Trump administration moves toward deregulation, communities are left to deal with the consequences — higher electricity demand, grid constraints, water use, and pollution,” Newsom says in the press release. “With these laws, we are ensuring that Californians remain in the driver’s seat — and that those profiting from data centers aren’t doing so at our expense.”Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Emma RothAINewsPolicyPoliticsVirginia governor creates an AI task force and moves to restrain data centersLauren FeinerSep 18The AI data center e-waste problem is huge — and getting biggerJustine CalmaSep 16I need your help for Installer!Jay PetersSep 16Most PopulariPhone owners can now submit claims in Apple’s $250 million Siri AI settlementA24’s reputation is on the line with the SCP Foundation movieI got to see Google’s wild ideas about the future of laptopsThe long dream of the GooglebookThe M5 Ultra Mac Studio tears through our benchmark testsAdvertiser Content FromThis is the title for the native ad
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