Gov. Gavin Newsom vetoed legislation that would have required data centers to report how much water they use.
New data centers are proliferating in California and other Western states as advances in artificial intelligence and growing investment in cloud computing fuel a construction boom. Centers filled with equipment generate a lot of heat and can use large amount of water to cool their servers and interiors. Many companies don't disclose how much they use.
Assembly Bill 93, introduced by Assemblymember Diana Papan (D-San Mateo), would require new data centers to disclose expected water use when applying for a business license, and would also require everyone to report their water use annually.
IN message explaining his decision on Saturday, Newsom said the widespread adoption of artificial intelligence is “causing unprecedented demand for data center capacity across the country.”
“As the global epicenter of the technology sector, California is well positioned to support the development of this critical digital infrastructure in the state,” Newsom wrote. “I don’t want to impose stringent reporting requirements on the details of operations in this sector without understanding the full impact of their technology on businesses and consumers.”
The bill was opposed by business groups, including the Data Center Coalition.
Much of the data center construction boom is happening in dry states, including California, Arizona and Texas, where water pressure is increasing amid dry conditions and temperature increase.
Papan said the bill represents a “smart and transparent approach to understanding and managing the enormous demand for water caused by AI” and that she will continue to try to “find the right balance between technological innovation and sustainable resource management.”
In other water news, Newsom captioned:
- Senate Bill 72which requires the Department of Water Resources to set long-term water goals, including having, within 15 years, “additional water capacity, water conservation, or water storage” totaling 9 million acre-feet—nearly three times the amount of water used annually. in six counties in Southern California. Newsom said in his message that moving forward, the state agency will have to “analyze current and future trends in water needs” when updating California's water plan.
- Senate Bill 31bill to help the state cope with worsening drought and the effects of climate change by increasing the use of recycled water. Introduced by Sen. Jerry McNerney (D-Pleasanton), it loosens rules to allow parks to use more reclaimed water and ensures homeowners associations won't have to install new pipes if they want to use it.
- Assembly Bill 1466 Allows courts in groundwater disputes to rule separately for owners of wells pumping small volumes of water. Assemblyman Gregg Hart (D-Santa Barbara), the bill's sponsor, said it would strengthen California's efforts to ensure groundwater sustainability and protect “small family farmers who face costly litigation.”
- Senate Bill 394 The project aims to combat water theft by allowing local governments to crack down on those who steal from fire hydrants through increased fines and new enforcement powers. The bill was introduced by Senator Ben Allen (D-Santa Monica) and supported by the Las Virgenes Municipal Water District and the Association. California Water Agencies. Las Virgenes, which supplies approximately 70,000 customers Agoura Hills, Calabasas and other communities said they have lost about 45 million gallons of water to hydrant theft in recent years. Supporters check said theft has reached a point where thieves are stealing for commercial uses, including construction, landscaping or farming. They could now face an initial fine of $2,500 and up to $10,000 for a repeat violation.






