Signal California Governor Signs Seven Bills Regulating Data Center Industry

Summary

California Governor Gavin Newsom signed a package of seven bills on September 21, 2026 that regulate the state's fast-growing data center industry. Three of the laws move the cost of electric infrastructure upgrades away from residential ratepayers and onto data center operators. Another three require operators to disclose their water use, land use and workforce needs. The seventh law removes the exemptions that let data centers skip environmental review. Together the measures give local communities more information for judging proposed projects and keep new grid costs from landing on other customers. The package reverses Newsom's position from last year, when he vetoed a water-disclosure bill out of concern that regulation could slow AI growth, and reflects rising voter backlash against data center expansion.