Big Tech Blocks California Data Center Rules, Leaving Only a Study Requirement
Source: CalMatters | By Alejandro Lazo
Tools that power artificial intelligence devour energy. But attempts to shield regular Californians from footing the bill in 2025 ended with a law requiring regulators to write a report about the issue by 2027. If that sounds pretty watered down, it is. Efforts to regulate the energy usage of data centers — the beating heart of AI — ran headlong into Big Tech, business groups and the governor.
It amounts to a “toothless” measure, directing the utility regulator to study an issue it already has the authority to investigate, said Matthew Freedman, a staff attorney with The Utility Reform Network, a ratepayer advocate. The report could help shape future debates as lawmakers revisit tougher rules and the CPUC considers new policies on what data centers pay for power – a discussion gaining urgency as scrutiny of their rising electricity costs grows, he said.
