California lawmakers’ latest attempt to address the environmental impacts of rapidly growing data centers was introduced in January through a bill authored by Assemblymember Rebecca Bauer-Kahan.

Assembly Bill 1577, or the Data Center Accountability Act, would require California data centers to disclose their energy use to the California Energy Commission, following the same standards used by the European Union.

During a news conference by the Progressive Caucus on Tuesday, Bauer-Kahan, D-Orinda, reiterated the need for better clarity in data centers’ energy use for the sake of ratepayers and their utility bills.

“This bill will ensure we have the transparency around data centers and how they’re using our energy, so we can chart a future where the data centers are not being subsidized by everyday Californians, but the companies that are profiting are paying for their energy and the infrastructure we need to build,” Bauer-Kahan said during the conference.

The U.S. Department of Energy found in its 2024 report that data centers used approximately 4.4% of the nation’s electricity in 2023, and it projects that by 2028, they could account for 6.7% to 12%.

In an email to The Sacramento Bee on Wednesday, Bauer-Kahan noted that while data center facilities use “enormous amounts of electricity…energy regulators often don’t know where they are located or how efficiently they operate.”

It’s pro-tech vs. pro-environment

Bauer-Kahan, along with some of her colleagues, has been consistent in her efforts to regulate data centers, which are emerging as major contributors to the ongoing climate battles. But lawmakers’ attempts to impose meaningful environmental accountability have faced challenges at the federal and state levels.

At the federal level, President Donald Trump has led the charge in embracing the technology, signing a July executive order directing agencies to fast-track data center construction. While the administration’s support for artificial intelligence infrastructure is consistent with its broader approach to environmental and climate policy, Gov. Gavin Newsom’s recent stance on the matter in California has surprised many environmental advocates.

Assemblymember Diane Papan, D-San Mateo, for example, sponsored AB 93 and it was passed by the Legislature but vetoed by Newsom last year. As he blocked the bill that would have required data centers to report their water use, Newsom explained his rationale behind the veto as feeling “reluctant to impose rigid reporting requirements about operational details ... without understanding the full impact on the businesses and the consumers of their technology.”

Expressing her disappointment with Newsom’s veto, Papan said, “AB 93 represented a reasonable, transparent approach to understanding the massive water demand driven by AI and data center expansion” at the time. For some, including Sean Bothwell of the California Coastkeeper Alliance, the veto echoed the governor’s broader preference for the tech industry over environmental accountability.

“It just confirmed my concerns throughout his governorship — that the image of being pro-tech is more important than preserving our water supply,” Bothwell said in November.

Newsom’s interest in expanding AI was also evident during his trip to a United Nations climate summit in Brazil, where he noted that he remains mindful of the environmental implications of the technology while touting California’s leading role in the industry at the same time.

Bauer-Kahan did not respond to The Bee’s question whether or not she’s concerned about the governor vetoing AB 1577, as he did AB 93.

“We want data centers to be built in California, but we need to know that our grid can support the new load. Powering data centers can’t come at the cost of powering homes,” she wrote in an email.

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