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Assembly committee hears expert and industry testimony on bill to require data centers to report and estimate water use

3170514 · April 30, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The California Assembly Local Government Committee heard testimony on AB 93, a bill that would require data centers to estimate water use when applying for business licenses and report actual consumption; academic and nonprofit witnesses called for transparency to protect strained water supplies, while industry groups warned of technical and security concerns.

The California Assembly Local Government Committee heard testimony on AB 93 on the environmental and operational impacts of data centers, including proposals to require those facilities to estimate water use in business-license applications and to report actual consumption on renewal.

Supporters — including Assemblymember (presenting) and witnesses from academia and environmental groups — said the bill is a measured response to rapid data-center growth that can add significant demand on local water systems. Shaoda Yuan, an associate professor at the University of California, Riverside, described technical aspects of data-center cooling and cited research estimating California data-center water use at about 5 billion liters in 2023, with possible growth through 2028. “Both the annual total water usage and peak water usage are important to consider,” Yuan said, adding that public reporting of on-site and offset water consumption would help assess regional impacts.

Sean Bothell, executive director of the California Coastkeeper Alliance, told the committee AB 93 would “make data centers participate in … making conservation a way of life” and stressed two reporting elements in the bill: pre-license assumed usage and post-license actual usage reporting. Bothell argued local governments need this information to set water rates equitably, because high-volume users can shift costs onto lower-income households.

Industry witnesses opposed the measure as drafted. Kara Boinder, representing the Data Center Coalition, said cooling systems and water choices are highly site-specific and that retrofitting existing facilities can be technically and financially prohibitive. She also raised cybersecurity and proprietary-technology concerns if requirements identify the types of cooling technologies in use. Boinder said the industry already pursues water-efficiency best practices and urged continued engagement with the author’s office.

League of California Cities and several utilities said they appreciated recent amendments and wanted additional technical clarifications. Local governments and municipal-utility representatives asked for more precision on how the data would be collected and used, and the committee and sponsor agreed to continued conversations.

Procedural status: the author accepted committee amendments, but the committee operated without a quorum for parts of the hearing and did not record a final committee vote on AB 93 during the session. The author asked for an "aye" vote when a quorum is present and indicated willingness to work with stakeholders on technical fixes.

Why it matters: Witnesses told the committee that some mid-sized and larger data centers can require hundreds of thousands to several million gallons of water per day for cooling and that, unlike electricity, water availability depends on environmental conditions and cannot be easily replaced. Supporters said the bill would give local water agencies and rate payers data needed to manage supply and costs; industry representatives cautioned about operational complexity, potential costs of compliance and confidentiality risks.

What’s next: Committee members did not take a final vote on AB 93 at the hearing. The author and committee staff said they will continue to refine the bill and consult with industry, utilities and environmental groups on technical language and implementation pathways.