California legislature reaches deal over data center regulation
California lawmakers reached a deal to regulate energy use by California’s growing data center industry.
The agreement is a compromise achieved after weeks of intense negotiation that also requires the tracking of power and water consumption.
The legislation requires the state’s utilities commission to produce special rates and updated rules for data centers’ use of electricity, including the costs for infrastructure upgrades.
Reaction over the legislation from data center critics was mixed. Some criticized a lack of clean energy requirements for data centers who use their own energy.
Although California is home to many companies that are integral to the data center sector, it has not seen the volume of new data center development as other states such as Texas and Virginia.
The high cost of land and power, and a lack of available land have hampered data center development in the Golden State.
Nevertheless, the updated rules are expected to encourage new development.
