# California tightens rules on AI data center energy and water use > Source: > Published: 2026-09-21 20:29:45+00:00 # California tightens rules on AI data center energy and water use By Emma RothSource: [The Verge AI](https://www.theverge.com) California Gov. Gavin Newsom [has signed seven bills](https://www.gov.ca.gov/2026/09/21/governor-newsom-signs-most-comprehensive-data-center-laws-in-the-nation-providing-communities-more-control-on-water-electricity-and-land-use/) designed to prevent AI data centers from passing utility costs onto residents, as reported earlier by [the *Los Angeles Times*](https://www.latimes.com/california/story/2026-09-21/newsom-signs-bills-to-regulate-data-center-industry-criticizes-trump-for-inaction). The package of laws requires the California Public Utilities Commission to introduce a new rate [classification](https://www.machinebrief.com/glossary/classification) for data centers, while forcing them to pay for upgrades to local power grids and water systems. Other bills included in the package will require proposed data centers to disclose their estimated water use to local governments, along with information about energy efficiency and drought planning. They must also meet certain energy, water, and fuel consumption … Get AI news in your inbox Daily digest of what matters in AI.