California and North Dakota Move to Regulate Data Centers

Legislators in California and North Dakota took divergent steps on September 1, 2026, to manage the rapid expansion of AI and data centers. The California State Legislature passed several bills, including Senate Bill 886, which requires the California Public Utilities Commission to establish a specific electricity rate for data centers to protect general consumers from cost increases. Additional measures mandate environmental impact reports and the disclosure of water and energy usage.

In North Dakota, the AI and Data Center Committee met in Bismarck to evaluate siting authority and environmental regulations. While some advocates highlighted economic benefits, critics called for a development moratorium due to a lack of transparency and the use of nondisclosure agreements. The North Dakota Public Service Commission suggested a reclamation program for decommissioning facilities, though the operator Applied Digital argued that such programs are unnecessary because buildings can be reused.

Energy infrastructure remained a central point of contention. Jonathan Fortner of the Lignite Energy Council testified that coal plants remain vital to North Dakota's grid and that there are no plans to retire them. Meanwhile, Governor Gavin Newsom stated California would handle development the right way, contrasting his approach with that of President Donald Trump, who argued that communities opposing data centers risk becoming backwards and poor.