A block of Equinix data centers sit across the street from a Prime data center on Great Oaks Blvd. in South San Jose on Aug. 31, 2026. Photo by Anna Hoch-Kenney, CalMatters
Facing growing public backlash and a pivot from his own past vetoes, Gov. Gavin Newsom signed a sweeping package of seven bills on Monday that aim to force the data center industry to pay its own way in California.
Three of the new laws shift electric infrastructure costs away from residential customers and toward data center operators, three more mandate disclosures of water usage and other resources, and the last one makes data centers ineligible for environmental review exemptions.
Newsom in a written statement contrasted the new regulations with President Donald Trump’s hands-off approach to data centers and artificial intelligence.
“We know that we don’t have to sell out Californians or sacrifice our well-being to innovate and succeed,” the statement read. “California has proven that time and time again. With these laws, we are ensuring that Californians remain in the driver’s seat — and that those profiting from data centers aren’t doing so at our expense.”
Trump has aggressively pushed to accelerate data center development nationwide, arguing…
