Big Tech Lobbies California to Block Data Center Regulations

A coalition of technology companies and utility providers is spending millions of dollars to lobby the California Legislature to block or weaken seven bills targeting data center regulation. The proposed legislation seeks to mandate water usage disclosures, require environmental reviews for all projects, and shift electric infrastructure costs from residential customers to data center operators.

Pacific Gas and Electric Company has led the spending effort, alongside companies such as Amazon and Anthropic. Industry proxies, including the Data Center Coalition and the Silicon Valley Leadership Group, have also funded the push to oppose the measures. This lobbying surge follows growing public backlash over utility costs, water consumption, and power grid strain.

Local opposition has already manifested in several cities. Voters in Monterey Park passed a ballot measure to permanently ban data centers, while the city of Pittsburg backtracked on previous approvals. In Gilroy, a $2 billion Amazon project continues to face community opposition. Lawmakers, including Senator Steve Padilla and Assemblymember Diane Papan, noted that shifting voter sentiment has created a more restrictive political environment.

Governor Gavin Newsom holds the final authority to sign or veto the bills, with a determination expected by the end of September.