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Data centers are a flashpoint in the U.S. But what happens when one comes to town?
Developing
In Short: California lawmakers have approved measures requiring data center developers to disclose water use and cover infrastructure costs, amid growing opposition and environmental concerns.
California lawmakers have approved a pair of bills aimed at data center developers, requiring them to disclose their water use and cover the full cost of any new water infrastructure needed for their facilities. The measures come amid growing opposition and environmental concerns over the rapid expansion of data centers across the state.
The Public Policy Institute of California survey found that a majority of residents oppose the construction of data centers in their areas, citing environmental impacts as a primary concern. This sentiment is echoed by environmental science professor Iris Stewart-Frey from Santa Clara University, who noted the lack of transparency around data centers’ environmental impact.
With little oversight and even less state direction, local governments are increasingly saying no to data center projects. Stewart-Frey highlighted that data center developers rarely disclose their water use, which is a significant issue in water-scarce regions like California.
Khara Boender, a Western government affairs director for the Data Center Coalition, expressed concern that these bills single out data centers from other non-agricultural water users. The coalition argues that the industry should not be disproportionately targeted.
As fights about data centers continue to erupt nationwide, California’s actions could set a precedent for other states grappling with similar issues. The bills aim to address the lack of transparency and oversight in the data center industry, while also addressing environmental concerns.
What this adds
The bills are part of a broader trend of local and state governments pushing back against data center expansion due to environmental and resource concerns. This follows similar opposition seen in Oregon, where Governor Kate Brown and hundreds of Oregonians called for a statewide moratorium on new and expanding large-scale data centers.
Background
Hundreds of Oregonians from across the state, including Governor Kate Brown, rallied at the State Capitol in Salem today to demand a statewide moratorium on new and expanding large-scale data centers.
Tech companies like Oracle and OpenAI are developing large-scale data centers despite legal challenges and local opposition, focusing on renewable energy pledges but still relying on natural gas.
What's still developing
- Opacity around data centers’ environmental impact is fueling fights around the state, from the desert and parched Imperial County to cities and farm towns.
- The bills are a new test of whether California will set limits on an industry that’s becoming a flashpoint over water, electricity and the environmental consequences of artificial intelligence.
- The bill bars local governments from approving new or expanded data centers unless the developer discloses its water plans and covers the full cost of any new water pipes, treatment or storage for the facility.
- California senators last week, in a decisive 30 to 9 vote, approved the measure requiring data center operators to report their estimated or actual water sources and use — under penalty of perjury — when seeking and renewing a business license or permit.