From Los Angeles Business Journal · Kelly Garcia · · 1m 20s
Data Center Development Takes a Beat
California's new data center laws require environmental reviews and community input, adding time and cost for projects.
In brief
California's new data center laws require environmental reviews and community input, adding time and cost for projects. California's data center bills mandate environmental reviews and community involvement to address water, power, and infrastructure concerns. Originally reported by Los Angeles Business Journal.
California Data Center Development
California has the third-highest number of data centers in the country after Texas and Virginia.
Community Concerns and Regulations
Los Angeles County and other jurisdictions have adopted temporary moratoria or bans on data center development to limit community impact.
Senator Padilla's Warning
California State Senator Steve Padilla notes data centers are built at an extreme rate without adequate guardrails, creating air quality, water supply, and energy supply challenges.
Governor Newsom's Data Center Bills
On September 21, 2026, Governor Newsom signed seven data center bills, termed the most comprehensive data center laws in the nation.
SB887 Environmental Review
SB887 requires environmental review under the California Environmental Quality Act for every data center project in California, eliminating categorical exemptions.
Water and Power Reporting
Data centers must report water use, electrical use, and noise levels to local agencies for infrastructure evaluation.
Developer Implications
Developers must plan for longer timelines, higher costs, and community engagement due to new environmental and regulatory requirements.
The essence
California's data center bills mandate environmental reviews and community involvement to address water, power, and infrastructure concerns.
