California and Texas tighten data center rules amid power, water and community concerns

  • Gavin Newsom signed seven California laws expanding data-center electricity, water and environmental oversight.
  • The laws cover data centers' energy, water and land use.
  • Gavin Newsom vetoed similar water-reporting legislation last year.

California Gov. Gavin Newsom signed seven laws tightening data center oversight, including water-consumption reporting similar to legislation he vetoed last year. The package expands state and local authority over facilities' energy, water and land use, requires disclosures, limits certain environmental exemptions and seeks to prevent utility customers from absorbing infrastructure costs. Newsom had previously signed a narrower electricity-rate study measure and, months ago, downplayed the issue's importance. The new report says the policy shift comes as he prepares for a likely 2028 presidential run and as his administration presents the measures as national-leading. In Texas, Gov. Greg Abbott directed the Texas Commission on Environmental Quality to halt new permits pending electricity-grid and water-resource audits. The moves reflect growing scrutiny of data centers' power demand, water use, grid costs, pollution and local impacts.

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