Gov. Gavin Newsom offered on Friday some of his most detailed remarks on data centers, which have become a target of bipartisan, nationwide ire because of their heavy demand for electricity and water for internal cooling systems, which has driven up local utility rates.
Read more Athletics part ways with GM David Forst amid another tough season. What’s next?
The outgoing governor, who is expected to run for president in 2028, vetoed legislation last year that would have required data centers to disclose how much water they use. At the time, he said he was “reluctant to impose rigid reporting requirements” on the centers’ operating companies.
Local opposition to data centers has emerged as the most visible symbol of the growing public backlash to artificial intelligence and the powerful companies profiting off of the emerging technology, some of which have demanded that local governments sign nondisclosure agreements during land use negotiations.
In recent months, Newsom, a longtime Big Tech ally, said he anticipates that AI backlash will dominate future elections.
California, Texas and Virginia host the highest number of data centers in the U.S. Newsom said he was on a call Thursday with state leaders in Virginia, which earlier this week ordered data center operators to prepare to shoulder more of the cost of building out energy infrastructure.
Data centers there have “run roughshod” by demanding as much as 25% of the state’s electrical capacity, Newsom said.
Read more Roseville police investigate as body found with gunshot wound in Solaire Park
Texas Gov. Greg Abbott, a data center champion and sometime Newsom antagonist, also recently paused approving more data centers while state regulators audit their electricity usage.
“We haven’t had that kind of investment with hyperscalers (in California), but we have a number of projects that are obviously generating a lot of headlines and controversy and concern leads to not just electrical consumption, but obviously water consumption as well,” Newsom said, seemingly referring to data center projects in places like Gilroy and Irvine.
He said companies should bear the cost of building more infrastructure, and not “socialize the cost on the backs of ratepayers.”
But Newsom said it was the role of local government and data companies to “address those anxieties around increased costs.”
Read more Folsom police to hold DUI and driver’s license checkpoint Friday night
