Under this law, signed September 21, 2026, cities and counties may not approve a new data center, or an expansion that raises its peak water use, unless the applicant meets water conditions.
Cities and counties could not approve a new data center, or an expansion that raises peak water use, unless the applicant meets the water conditions. Meeting them does not guarantee approval.
Applicants must provide a water supply assessment, water-use and efficiency plans, workforce details, and, starting January 1, 2028, a drought water scarcity plan.
Data center applicants must pay the full cost of any water supply upgrades needed to serve the project, as determined by the local water supplier.
Cities and counties may not approve a permit or other approval to build a data center, or expand one so its maximum peak water use rises, unless the applicant meets the law's conditions. It applies to discretionary and ministerial permits and other approvals, in every city, including charter cities. Meeting the conditions does not force a city or county to approve a project.
Applicants must give the city or county a water supply assessment, projected water use, water efficiency measures, and details on the workforce the project needs. Workforce details cover job types, how long jobs last, pay and benefits, and how many workers live in the county and in the state. A water scarcity plan is also required. It must set steps for each level of drought, such as cutting water withdrawals, limiting nonessential use, and recycling water. The water scarcity plan is required beginning January 1, 2028.
Applicants must take responsibility for the full cost of any water pipelines, treatment, storage, or distribution upgrades needed to serve the project. The water supplier determines which upgrades are required. If a court strikes down this cost requirement, the rest of the law still stands.
No hearings or votes scheduled.