Will lawmakers water down data center rules?

Tech companies are spending millions to influence California lawmakers as the state considers bills to regulate artificial intelligence data centers, CalMatters has learned. The legislation aims to shift infrastructure costs to operators, require environmental reviews, and mandate disclosures of water and energy use. However, industry groups have lobbied aggressively, with Amazon spending over $1.7 million and the Data Center Coalition—representing Google, Microsoft, and OpenAI—spending $60,000 to oppose regulation.
Four bills targeting data centers died or were weakened last year after tech companies opposed them. Public opposition has since grown, with a March Gallup poll showing 70% of Americans nationwide opposing data centers. A Public Policy Institute of California survey found similar opposition within the state.
Legislators are now revisiting the issue, but industry influence remains strong. Tech companies argue the proposed rules would stifle innovation and increase costs. Meanwhile, environmental and public interest groups say unchecked data centers strain resources and lack transparency.
A separate study by the Public Policy Institute of California found that Proposition 47, a 2014 ballot measure reducing some felony drug crimes to misdemeanors, likely contributed to a 10% increase in street homelessness between 2015 and 2019. The measure was intended to ease prison overcrowding but resulted in an additional 7,000 Californians experiencing unsheltered homelessness.
The findings come as voters express frustration with past criminal justice reforms, as evidenced by the 2024 passage of Proposition 36, an anti-crime measure.
In another legislative move, California Democrats are pushing a bill to ban electric shock gloves, such as those sought by federal immigration authorities. The gloves, which can deliver repeated electric shocks, have faced criticism from civil rights groups over concerns about excessive force. A Kentucky man reportedly died after being shocked 40 times in jail last year.
Law enforcement groups oppose the bill, arguing it would limit officers’ ability to de-escalate dangerous situations. Legal experts question whether the bill would survive constitutional challenges, as it does not clearly define how the gloves violate rights.
Meanwhile, lawmakers reached a compromise on legislation addressing sex abuse claims in schools. The bill raises the evidentiary standard for older claims but does not include a cap on payouts, disappointing some public agencies seeking stricter limits.
California’s Democratic leadership, which holds overwhelming control in the legislature, has faced scrutiny over fiscal decisions. Analysts have questioned how policymakers justify spending billions beyond available revenues.
This coverage is part of a collaboration between CalMatters, KALW Public Media, and San Francisco Public Press ahead of the city’s upcoming ballot measure discussions on September 16. For more on California’s political and policy landscape, follow CalMatters’ daily newsletter, *WhatMatters*.
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