Governor Blocks Mandatory Water Reporting for Data Centers
California Governor Gavin Newsom has vetoed legislation that would have required data centers in the state to disclose their water consumption levels, according to reports. The decision, first reported by The Register, blocks Assembly Bill 93 which would have mandated water use reporting for an industry known for significant water consumption for cooling operations.
Legislative Details and Governor’s Rationale
The bill, introduced by California State Assembly member Diane Papan on January 7, would have required data center owners to provide “an estimate of the expected water use” when applying for initial business licenses and submit annual consumption reports during permit renewals. However, in an October 11 letter to the Assembly, Newsom declined to sign the legislation into law.
“While I appreciate the author’s intent, I am reluctant to impose rigid reporting requirements about operational details on this sector without understanding the full impact on businesses and the consumers of their technology,” Newsom wrote in his response, according to the report. The full text of AB93 outlined requirements that would have given the Department of Water Resources authority to classify data centers into tiers based on water use factors and establish appropriate standards for each tier.
California’s Water Sustainability Challenges
The veto comes as California faces severe water sustainability issues, with the US government’s Drought Monitor indicating that more than 44 percent of the state is experiencing some level of drought. Analysts suggest that data centers represent significant water consumers, with the International Energy Agency reporting that a typical 100MW data center in the United States uses approximately two million liters of water daily.
On a global scale, sources indicate the data center industry currently consumes more than 560 billion liters of water annually, with projections suggesting this figure could rise to 1,200 billion liters by 2030. The report states that water demand is being exacerbated by data centers being built in high concentrations in water-scarce areas.
Industry Trends and Environmental Concerns
Recent analysis from Bloomberg found that nearly two-thirds of new data centers constructed or under development since 2022 have been built in areas with high water stress. Five states – California, Texas, Arizona, Illinois, and Virginia – reportedly account for 72 percent of all new data centers in areas of acute water stress.
While data centers remain significant water consumers, the report suggests some hope exists through innovative cooling systems. A Microsoft study published in the journal Nature found that cold plates and immersion cooling can reduce water usage by 31 to 52 percent compared to traditional air cooling systems over their entire life cycles.
Industry Response and Sustainability Efforts
Major technology companies have reportedly placed greater emphasis on water sustainability measures. According to industry analysts, AWS, Meta, Microsoft, and Google all have clear water neutrality goals and have supported various community water reclamation projects.
The decision occurs amid broader global technology developments, including India’s UPI expansion, London Capital Finance legal actions, and UK government responses to security concerns.
As California continues to balance technological growth with environmental sustainability, sources indicate the debate over data center water usage regulations will likely continue amid the state’s ongoing drought challenges.
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