California lawmakers are moving to tighten regulation of the data center industry, passing seven bills in the final week of the state legislative session. According to Sina Finance, the measures require data centers to report energy and water consumption to government agencies, complete environmental impact assessments before construction begins, and follow special electricity pricing rules to prevent costs from being shifted to other power users.
U.S. President Donald Trump had urged places to welcome data center construction on social media earlier on Monday, warning they would otherwise become "backward and poor." Hours later, the final batch of the bills was approved. California Governor Gavin Newsom said, "If we are going to develop data centers, we need to regulate this properly," and added that the president's view was to let the industry grow unchecked.