
"In a message explaining his decision Saturday, Newsom said the widespread adoption of AI "is driving an unprecedented demand for data center capacity throughout the nation." "As the global epicenter of the technology sector, California is well positioned to support the development of this critically important digital infrastructure in the state," Newsom wrote. "I am reluctant to impose rigid reporting requirements about operational details on this sector without understanding the full impact on businesses and the consumers of their technology.""
"New data centers have been rapidly proliferating in California and other western states as the rise of artificial intelligence and growing investments in cloud computing drive a construction boom. Assembly Bill 93, introduced by Assemblymember Diane Papan (D-San Mateo), would have required new data centers to disclose their expected water use when they apply for a business license and would have required all to report their water consumption annually."
Governor Gavin Newsom vetoed Assembly Bill 93, which would have required new data centers to disclose expected water use at licensing and required all data centers to report annual water consumption. He cited rapid, AI-driven demand for data center capacity and said California is well positioned to support digital infrastructure, expressing reluctance to impose rigid reporting requirements without understanding impacts on businesses and consumers. The bill faced opposition from business groups including the Data Center Coalition. Data center construction is booming in arid western states, and centers can use large quantities of water to cool equipment. Newsom signed separate bills on water supply goals, groundwater dispute resolution, and theft from fire hydrants.
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