California passes seven laws curbing AI data center utility and water costs

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California Governor Gavin Newsom has signed a package of seven bills aimed at regulating the environmental and utility impact of AI data centers. The legislation directs the California Public Utilities Commission to establish a new rate classification specifically for data centers. Data centers will now be required to fund upgrades to local power grids and water infrastructure rather than passing those costs to residents. The laws also mandate that proposed data centers disclose estimated water usage, energy efficiency measures, and drought planning details to local governments. Additionally, facilities must comply with specific standards for energy, water, and fuel consumption.

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