Governor Gavin Newsom signed a package of comprehensive data center legislation in Sacramento on September 21, 2026. The laws grant communities greater authority over water usage, electricity consumption, and land use decisions related to new facilities. Lawmakers stated the measures are designed to protect California’s innovation economy while ensuring residents have input on proposed projects.
What it means
The legislation includes specific provisions to address cost allocation and environmental standards. Senator Jerry McNerney said SB 1168 ensures that data centers, rather than ratepayers, absorb the costs of their energy use and required utility upgrades. Assemblymember Rick Chavez Zbur noted that AB 2383 requires large energy users to pay their fair share, preventing unfair cost shifts to other customers.
Assemblymember Rebecca Bauer-Kahan stated that AB 1577 prioritizes ratepayers by providing transparency for state and local control over energy demands. Senator Steve Padilla described the laws as strong protections that make corporate promises regarding air, water, and climate standards legally enforceable. Assemblymember Diane Papan said the bills are essential for future water management in California.
Advocacy groups emphasized the financial and grid stability benefits. Mark Toney of TURN stated the measures prevent ratepayers from subsidizing data center infrastructure and wildfire mitigation costs. Sam Uden of Net-Zero California said the bills lay a foundation for new energy supply and grid reliability. Victoria Rome of the Natural Resources Defense Council noted the laws steer data centers toward clean energy and provide community information before projects proceed.
Key facts
- Governor Gavin Newsom signed the legislation on September 21, 2026.
- SB 1168 addresses energy use costs and utility upgrade expenses.
- AB 1577 focuses on transparency for state and local control over energy demands.
- AB 2383 ensures large energy users pay their fair share.
- The laws aim to protect ratepayers from subsidizing infrastructure costs.
- Measures include requirements for community information before projects proceed.
Source: California Governor’s Office news release