California data center rules expand as Chicago proposes 12-month moratorium

  • California enacted seven data center oversight laws, while Chicago proposed a 12-month expansion moratorium.
  • California’s measures require resource disclosures and shift incremental grid and water infrastructure costs to data centers.
  • Chicago’s proposal requires an initial City Council committee vote, following Illinois’ pause of data center program agreements.

California Governor Gavin Newsom enacted a seven-bill package requiring data center resource disclosures, shifting incremental grid and water infrastructure costs to developers, tightening environmental review and enforcing state energy procurement rules without imposing an outright construction cap. Separately, Chicago Mayor Brandon Johnson proposed a 12-month moratorium on data center expansion, saying the pause would allow officials to address energy and pollution risks while protecting residents’ health, safety, affordability and quality of life. Chicago’s ordinance will go first to a City Council committee, while Illinois Governor JB Pritzker has paused agreements under the state Data Center Investment Program. The developments come as artificial intelligence infrastructure increases demand for power, water and land and prompts more cautious policies in Texas and Pennsylvania.

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