The Overview

If your city is weighing a new data center, it can no longer approve the project without first knowing how much water the facility plans to use. California's Data centers: water use disclosures, AB 2469 became law when Gov. Gavin Newsom (D) signed it Sept. 21. ​

CalMatters reported in May that data centers were expanding in water-stressed California communities while disclosure rules left the public without a clear picture of how much water the facilities use. The law took effect immediately upon signing.

What the Law Does

No city, county, or city and county may approve a permit or other entitlement for a new data center, or an expansion that increases peak water use, unless the applicant meets specified conditions, including a water scarcity plan and a water supply assessment. The developer must also cover the full cost of any water conveyance, treatment, storage, or distribution infrastructure improvements the project requires, as determined by the applicable water supplier. Data centers use water for cooling, and the Environmental and Energy Study Institute notes that reclaimed or non-potable water can help reduce demand on drinking-water supplies in dry or drought-prone areas.

Legislative Status

Asm. Diane Papan is a Democrat serving in the California State Assembly. The full Assembly passed it 61-14 on May 27. The Senate passed it 28-9 on Aug. 30, and the Assembly concurred in the Senate's amendments 61-12 on Aug. 31.

After signing, Papan said: "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. The law provides for transparency and accountability in the development process." She also told POLITICO: "With transparency, we don't have to have moratoriums."

The Data Center Coalition, which represents data-center owners and operators, opposed the bills and cited privacy and security concerns, Data Center Dynamics reported. The League of California Cities, the California State Association of Counties, and the Rural County Representatives of California opposed the bill as of mid-August, according to Edhat.

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