AI Policy2026-09-24The Verge

California wants data centers to disclose water and power

California is moving to shed more light on the growing impact of data centers, signing bills that could require operators to disclose more about their electricity and water use. According to The Verge, Governor Gavin Newsom approved measures intended to give communities better information and a stronger voice as data centers expand rapidly across the United States. The legislation arrives as AI drives enormous demand for computing power, cooling, and electricity. Large data centers can consume as much power as small cities and require significant water for cooling, sometimes in regions already facing scarcity or grid strain. Those pressures have fueled local opposition, with residents and officials raising concerns about secrecy, utility costs, and environmental impact. Supporters argue that disclosure is a basic step toward accountability. If communities know how much power and water a facility expects to use, they can assess effects on rates, infrastructure, and local resources. They can also negotiate more effectively over permits, taxes, and community benefits. The bills could push data center developers to be more transparent about their footprints and long-term plans. Industry groups may warn that overly detailed reporting could be burdensome or reveal sensitive operational information. But the political momentum for more oversight is growing. States and localities are grappling with how to attract tech investment without imposing hidden costs on residents. Data centers can bring jobs and tax revenue, yet they also place new demands on grids and water systems. California's action could become a model for other states. It reflects a broader question: as AI scales, who bears the cost of the infrastructure behind it? The answer will depend on rules that make those costs visible. For now, the state is signaling that data centers should not expand without greater transparency about the resources they consume.

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