Overview
- Assembly Bill 93 would have required new data centers to disclose expected water use when applying for licenses and mandated annual reporting of actual consumption.
- Gov. Gavin Newsom rejected the measure, citing uncertainty about impacts on businesses and consumers as demand for AI-capable facilities accelerates.
- The bill faced opposition from business groups including the Data Center Coalition, which raised operational and security concerns about mandated disclosures.
- Sponsor Diane Papan called the veto disappointing and said she will continue working to balance technology expansion with sustainable resource management.
- While vetoing AB93, Newsom signed SB72, SB31, AB1466 and SB394 to set long-term water targets, expand recycled water use, adjust groundwater judgment procedures and strengthen penalties for water theft.