Powering Down the Tech Titans: Data Centers Face a Legislative Uprising in California

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A new wave of legislation is rolling through California aimed at putting tech giants on a power diet, and, frankly, it’s about time. California residents are already paying the highest electricity rates in the continental U.S., and while wildfires have burned a hefty hole in our wallets, it turns out the voracious appetite of data centers is a significant contributor to our soaring bills.
The unassuming buildings we never think about, where our endless scrolling and online shopping data is stored, are gobbling electricity at a pace that worries state officials. Thanks to the rise of AI and tools like ChatGPT, these digital fortresses are multiplying faster than you can say “mine’s an ethically-sourced oat milk latte”. And guess who ends up footing the bill when utility companies have to ramp up infrastructure to keep up? That’s right, residents like us.
In response, California lawmakers have sprung into action, pushing through bills that would ensure consumers aren’t left holding the bag for Big Tech’s insatiable energy demands. One bill, spearheaded by Assemblymember Rebecca Bauer-Kahan from San Ramon, makes it a requirement for data centers to disclose their energy usage, so maybe we can finally hold those tech moguls accountable for their techy little eco-footprints. Meanwhile, State Senator Steve Padilla is looking to develop a rate structure uniquely for data centers, targeting the industry’s extravagance like a hawk eyeing its next meal.
To add some much-needed pressure, Padilla’s also suggested tax breaks for data centers that play nice with renewable energy. That’s right, companies can save some dough if they keep it clean, finally, a win-win! As lawmakers from tech hubs nationwide figure out that letting the big boys play in the utility sandbox isn’t good policy, many are calling for reforms that put an end to the current trend of regular folks subsidizing the electrifying fun of giant corporations.
Virginia and Texas are already part of this anti-capitalistic crusade; they’re drafting regulations to keep data centers in check, all while California gears up to potentially create a model for how these regulations can work across the globe.
As Silicon Valley continues to build up its digital empire, at what point do we stop letting these tech titans extract resources unchecked? California’s legislators are trying to lay the groundwork for protecting ratepayers and the environment before it’s just too late. Because honestly, let’s not pretend we can all just keep paying more to enrich the private sector while our communities struggle. There’s enough tech-induced chaos without letting their power-hungry antics send our electric bills through the roof.
AUTHOR: cgp
SOURCE: CalMatters