THE CRUNCH
California Governor Gavin Newsom has signed seven bills to ensure AI data centres pay for their own infrastructure upgrades and disclose resource consumption. The package requires the state's utility regulator to create a new rate classification for data centres and mandates that they cover the costs of upgrading local power grids and water systems. Proposed centres must also disclose their estimated water use, along
energy efficiency and drought planning. The laws aim to prevent data centres from passing utility costs onto residents. The measures come as the state grapples with the rapid expansion of AI infrastructure and its impact on local resources.