Press Release

Nation-Leading Data Center Regulations Head to Governor’s Desk

SACRAMENTO – Last night, the California State Legislature advanced Senate Bills 886 and 887, both authored by State Senator Steve Padilla (D-San Diego). This data center legislative package contain some of the strongest rate payer protections and environmental protections from data center costs in the country.

“The Legislature is about to pass one of the nation’s strongest data center ratepayer protections – stopping Big Tech from sticking California families with the bill for their data centers while ensuring all local voices have a say on these projects and they comply with our air, water, and climate standards,” said Senator Padilla. “Big Tech keeps promising to be good neighbors and these bills will make those promises legally enforceable. No more saying one thing in the White House and doing the opposite in our local communities.”

After critical discussions with regulators, clean energy advocates, and community voices, the California Legislature has amended Senate Bill 886, authored by Senator Padilla, and Assembly Bill 2383, authored by Assemblymember Zbur, to form a comprehensive legislative package with some of the strongest ratepayer protections from data center costs.

The bill package ensures that data centers:

  • Pay all transmission infrastructure upgrade costs required to connect them to the grid
  • Cover all generation costs needed to serve them
  • Bear a larger share of wildfire mitigation and liability costs than they do today.

These protections prevent data center electricity and grid costs from being foisted on other customers while keeping California’s commitment to its aggressive clean energy and climate targets.

Senator Padilla is also the author of Senate Bill 887, which ensures local communities have a say in data center projects and requires that all projects undergo environmental review to protect local water and air quality. These protections and requirements to include local voices are proving critical as data centers across the country are facing pushback from the communities they are proposed to be built in. Recently, the Trump Administration announced it plans to eliminate requirements for public input for new data centers and the power plants needed to run them. Additionally, the largest data center project in California has been proposed to be built in Senator Padilla’s district, with the developer cutting a backroom deal to circumvent critical environmental review without any community input.

The Senate approved SB 886 by a vote of 28 to 10 and the Assembly 49 to 7. SB 887 passed the Senate 29 to 8 and the Assembly 42 to 10. The bills now head to Governor Newsom’s desk for his signature.

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Steve Padilla represents the 18th Senate District, which includes the communities of Chula Vista, the Coachella Valley, Imperial Beach, the Imperial Valley, National City, and San Diego. Prior to his election to the Senate in 2022, Senator Padilla was the first person of color ever elected to city office in Chula Vista, the first Latino Mayor, and the first openly LGBT person to serve or be elected to city office. Website of Senator Steve Padilla: https://sd18.senate.ca.gov/