Data centers: water use disclosures

The law makes water availability, drought planning, and project-funded infrastructure prerequisites for local data-center permits. It applies statewide, including in charter cities.

What the law does ​

• Bars cities and counties from approving permits or entitlements for a new data center, or an expansion that raises peak water use, unless specified conditions are met.
• Requires applicants to submit a water supply assessment, projected water use, and water-efficiency measures.
• Requires applicants, starting January 1, 2028, to submit a water scarcity plan covering responses to varying drought levels.
• Requires applicants to disclose projected workforce composition, jobs, duration, pay and benefits, and in-county and in-state residency shares.
• Requires applicants to pay the full cost of water conveyance, treatment, storage, or distribution upgrades needed for the project, as determined by the applicable water supplier.
• Preserves local discretion to deny a project even if the applicant meets these requirements.

Who it affects ​

• Data-center developers seeking local approval for new facilities or water-use-expanding projects.
• Cities, counties, and city and county governments reviewing data-center permits and entitlements.
• Water suppliers that determine infrastructure improvements needed to serve covered projects.