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California Governor Gavin Newsom signed seven bills aimed at preventing AI data centers from passing utility costs onto residents. The legislation requires the California Public Utilities Commission to create a new rate classification for data centers and forces them to pay for grid and water system upgrades. Additional provisions in the package require proposed data centers to disclose estimated water use to local authorities, reflecting growing state-level pushback against the resource strain caused by the AI boom.

Sources:The Verge