California Governor Newsom recently signed two bills, AB 2619 and AB 2469, which require data center developers to provide the state with information about their water usage. This move is seen as progress in addressing the impacts of data centers on water resources.
These bills are necessary to address the current lack of information about data center water usage, which makes it difficult for decision makers to approve new facilities. However, they are insufficient on their own, as data alone is not enough to inform decisions.
Data Analysis and Capacity Building
To effectively respond to the proliferation of data centers, the state needs to add analytical capacity to analyze the new data. This can be achieved by adding staff to agencies such as the Department of Water Resources and the State Water Resources Control Board.
This additional capacity would help answer basic questions about data centers in California, such as the number of existing and proposed facilities, their water usage, and the adequacy of current regulations. It would also enable the state to provide guidance to communities faced with new data center proposals.
A data center strike team could also be developed to provide support to communities in understanding the implications of data center proposals. This team would be composed of experts from various fields and would help communities understand the tradeoffs around water supply, energy use, and economic impacts, and consider the effects of these factors.
Future Legislation and Progress
A clause in AB 2629 that would have required the Department of Water Resources to produce guidelines and best practices for data centers and water use was struck from an earlier version. Future legislation could revisit this notion and strengthen it with specific capacity building measures.
While progress has been made, there is still hope for a future where the data center industry can generate a robust social license to operate by taking community concerns into account. Recent reporting by journalists such as Ian James and Rachel Becker has helped raise awareness about the issue.