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Newsom Weighs Seven California Bills to Regulate Data Centers as Opposition Mounts

September 5, 2026 at 08:05 EDT

Policy & Regulation
Infra & Chips

California Gov. Gavin Newsom has until Sept. 30 to sign or veto seven bills that would put special electricity rates, environmental reviews, and water- and energy-use reporting on data centers. The measures, sent to his desk after a late-session compromise, are meant to stop large computing sites from shifting grid-upgrade costs onto households at a time when most Californians say they do not want a facility built nearby.

September 2026 · California

Newsom's data-center test

Seven bills that would make large computing sites cover more of their own grid, water, and review costs sit on the governor's desk, with a Sept. 30 deadline, as most Californians oppose new facilities nearby.

Bills awaiting a signature

73%

Adults oppose a nearby site

75 MW

Peak-demand tariff floor

$1.8B

PG&E-area upgrade estimate

Senate vote on SB 886

Lawmakers cleared the lead ratepayer bill 28 to 10 in the Senate. Column height matches the vote count.

Yes

Each block equals two Senate votes. The Assembly later passed the bill 49 to 7.

Statewide electricity share

Data centers are about 2% of California demand now. State planners expect that share to double in 10 years.

Now

~4%

In 10 years

Takeaway: the load is still small, but the growth is a 2× step on the same grid.

If the energy bills become law

Legislature passed the package

→

Newsom decides by Sept. 30

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CPUC writes tariffs by July 2027

Ratepayer case

Large loads should pay for the upgrades they trigger, so household bills do not absorb AI-driven grid costs.

Industry case

The bills single out one customer class, and extra rules on top of high power prices could push projects out of state.

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