California signs seven bills making data centers pay for grid and water upgrades
The bills are signed law: data centers can no longer pass grid and water upgrade costs to residents, with actual rates still to be set by regulators.
Original event 2026-09-21
California Governor Gavin Newsom signed seven bills on September 21 requiring data centers to pay for upgrades to local power grids and water systems.
The package requires the California Public Utilities Commission to create a new rate classification for data centers, and new projects must disclose estimated water use, energy efficiency and drought planning to local governments.
The actual cost impact cannot be quantified until the CPUC writes the rate rules. According to The Verge, Newsom said the laws are meant to stop data centers from passing utility costs onto residents.