Papan’s Data Center Bills Signed by the Governor

SACRAMENTO, CA - Two bills authored by Assembly Water, Parks and Wildlife Committee Chair Diane Papan to strengthen oversight of data center water use and safeguard local water supplies, have been signed into law by Governor Gavin Newsom.

AB 2469 gives cities and counties the tools to fully evaluate the water impacts of proposed data centers before considering projects. Under the bill, applicants must complete a water supply assessment and develop a water scarcity plan as part of the permitting process. The legislation also protects ratepayers by requiring data centers to fully finance any new or expanded infrastructure needed to support their operations.

"Every drop counts," said Papan.. "These bills give communities the transparency they deserve and the tools they need to protect local water supplies while keeping California at the forefront of technological innovation."

AB 2619 establishes a statewide water reporting requirement for data center operators, using the existing business license process. When applying for a business license, an operator must disclose projected water demand. Thereafter, during license renewals the company must report its actual annual water consumption.

"AB 2619 ensures that innovation and sustainability go hand in hand," Papan said. "We cannot manage what we do not measure."

As California faces increasingly severe drought conditions driven by climate change, the legislation ensures that technological innovation advances responsibly and sustainably.

"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," Papan said. "AB 2469 provides for transparency and accountability in the development process."

Both bills will become effective January 1, 2027.

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