California orders data centres to disclose energy and water use
California Governor Gavin Newsom has signed seven bills designed to increase transparency around data centres' impact on electricity bills and water supplies. The legislation responds to growing concerns about how artificial intelligence infrastructure strains power grids and water systems, with communities protesting over the lack of public information about energy and resource consumption. Starting next year, data centre operators will be required to disclose key environmental and energy data, helping communities and scientists assess whether these facilities are raising utility costs and depleting local resources.
The bills include several different requirements: AB 1577 mandates monthly energy consumption reporting; AB 2619 and AB 2469 require water usage disclosures; SB 886, AB 2383 and SB 1168 direct California's Public Utilities Commission to establish separate power rates for data centres so they bear their own infrastructure costs; and SB 887 eliminates environmental review exemptions. Mark Specht from the Union of Concerned Scientists notes that basic information about data centre operations has been lacking, making it difficult to assess their actual impact. Research suggests two possible scenarios: one where rising electricity demand and infrastructure costs push up bills for other consumers, and another where spreading fixed grid maintenance costs across more customers could lower rates—though without current data, it remains unclear which scenario is unfolding in California.
- California requires data centre transparency through monthly energy and water reporting
- New bills establish separate power rates to prevent cost-shifting to other consumers
- Impact on electricity costs remains uncertain without comprehensive data
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Originally published by The Verge as “Data centers are black boxes, but California wants to change that ”.