Data centers guzzle water. State won't ask how much

Newsom vetoes bill requiring them to report projected usage amid AI-fueled construction boom in the arid West

- BY IAN JAMES

PAUL KURODA For The Times

SANTA CLARA, Calif., has dozens of data centers. They can use large quantities of water to cool equipment.

Gov. Gavin Newsom has vetoed legislation that would have required data centers to report how much water they use.

New data centers have been rapidly proliferating in California and other Western states as the rise of artificial intelligence and growing investments in cloud computing drive a construction boom. The centers, full of equipment, generate lots of heat and can use large quantities of water to cool their servers and interiors. Many companies don't reveal how much they use.

Assembly Bill 93, introduced by Assemblymember Diane Papan (D-San Mateo), would have required new data centers to disclose their expected water use when they apply for a business license and would have required all to report their water consumption annually.

In a message explaining his decision Saturday, Newsom said the widespread adoption of AI "is driving an unprecedented demand for data center capacity throughout the nation."