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Policy & safety

California signs seven laws to limit data-center utility cost shifting

Governor Gavin Newsom signed seven bills intended to stop AI data centers from passing utility costs to residents, The Verge reports. The package requires the California Public Utilities Commission to introduce a new rate classification for data centers.

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Key points

  1. The seven-bill package targets the transfer of AI data-center utility costs to residents.
  2. The California Public Utilities Commission must create a new rate classification for data centers.

Why it matters

Data-center operators and infrastructure buyers need to account for how utilities will assign costs under the new classification. The laws establish a policy direction, but do not by themselves provide a usable rate forecast.

What to watch

Watch for the commission’s rate proposal, implementation dates and rules defining which facilities fall into the new classification.

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