The Verge
California tightens rules on AI data center energy and water use
Monday, September 21, 2026
California Gov. Gavin Newsom signed seven bills that establish new utility rate classifications for artificial intelligence data centers and require the facilities to fund infrastructure upgrades to support their operations. The California Public Utilities Commission will implement a separate rate structure for data centers rather than applying standard residential or commercial rates. The legislation addresses concerns about energy and water consumption by data center facilities operating in the state.
