Legislation Addresses the Data Center Industry’s Growing Pressure on California’s Precious Water Supplies
SACRAMENTO, CA — Two bills authored by Assembly Water Committee Chair Diane Papan to strengthen oversight of data center water use and safeguard local water supplies, have passed the California State Assembly.
As artificial intelligence fuels rapid growth in data centers across California, Assemblymember Papan introduced Assembly Bills 2469 and 2619.
“These bills will allow locals to make informed decisions about data centers, ensuring they do not strain local water resources or subject ratepayers to increased costs,” said Papan.
AB 2469 helps cities and counties fully evaluate the water impacts of proposed data centers before approving projects. Under the bill, applicants must complete a water supply assessment and develop a water scarcity plan as part of the permitting process. The legislation also protects ratepayers by requiring data centers to fully finance any new infrastructure needed to support their operations.
“In the face of persistent drought and growing pressure on our water systems, California must be prepared for the effects of major new projects on our communities,” Papan said. “AB 2469 provides for transparency and accountability in the development process.”
AB 2619 establishes a simple statewide water reporting requirement for data center operators, using the existing business license process. When applying for a business license, a company must disclose projected water demand. Thereafter, during license renewals the company must report its actual annual water consumption.
“AB 2619 ensures that innovation and sustainability go hand in hand,” Papan said. “We cannot manage what we do not measure.”
As California faces increasingly severe drought conditions driven by climate change, the legislation aims to ensure that technological innovation advances responsibly and sustainably.
“Every drop counts,” Papan added. “These bills give communities the transparency they deserve and the tools they need to protect local water supplies while keeping California at the forefront of technological innovation.”
Both bills will now move to the California State Senate for consideration in policy committees.
