Data center reporting rules head to Calif. governor amid water use concerns

By Chase DiFeliciantonio | 09/11/2025 04:08 PM EDT

The measure would require data center operators to estimate their water usage when applying for new permits or renewing their business licenses.

SACRAMENTO, California — Assemblymember Diane Papan’s AB 93 passed a final concurrence vote in the Assembly on Thursday and now heads to Democratic Gov. Gavin Newsom’s desk.

The measure would require data center operators to estimate their water usage when applying for new permits or renewing their business licenses, under penalty of perjury. In amendments last week, Papan (D) struck a provision that would have required companies to recertify their water usage after the state Department of Water Resources develops efficiency guidelines.

Big picture: The expansion of data centers has been a key priority for tech booster groups this year, and the measure has drawn opposition from the Silicon Valley Leadership Group, TechNet and the Data Center Coalition. These groups argue the easy expansion of data centers is essential for the state’s thriving artificial intelligence industry to remain competitive, arguing more regulation will hamper construction.

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Papan and allies, meanwhile, are concerned about the resources data centers use, citing worries about water shortages in the wake of the devastating Los Angeles fires earlier this year.

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