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California signs seven data center bills covering grid costs, energy and water reporting

Gov. Gavin Newsom signed seven bills aimed at making data centers disclose energy and water use and pay for grid upgrades. The package includes rate-structure review and new reporting rules, but the exact cost rules differ by bill.

By Greener Numbers Editorial Team · Published September 25, 2026 · Updated 9/25/2026

California Gov. Gavin Newsom signed seven data center bills on Sept. 21, covering electricity costs, water use, reporting and environmental review. The governor said the package aims to give communities more information about proposed facilities and keep grid-upgrade costs from shifting to households.

SB 1168 directs the California Public Utilities Commission to examine data center energy use and rate structures, including costs of transmission and distribution upgrades and load increases. Utility Dive reports that SB 886 and SB 887 address infrastructure and generation costs, a larger share of wildfire mitigation and liability costs, and environmental review. The state says data centers will no longer qualify for blanket environmental exemptions under the new package.

AB 1577 requires monthly reporting of data center energy use and efficiency metrics to the California Energy Commission, along with estimated energy use to local agencies during permitting. AB 2383 encourages onsite clean energy. AB 2469 and AB 2619 add water-supply assessments, scarcity plans and statewide water-use reporting.

California had 296 data centers according to Data Center Map, as cited by Utility Dive. That is an inventory estimate, not a count of facilities covered by each provision. The measures do not establish that every grid upgrade has already been paid for or quantify future household bill savings. Those outcomes will depend on implementation and actual projects.

Official source: Governor of California; Utility Dive ↗