Water resources: data centers

The law gives water suppliers and local governments advance information about data-center demand and requires water-shortage planning to account for that demand.

What the law does ​

• Requires data-center owners and operators to give their water supplier a sworn estimate of expected water use, water source, and peak daily, peak monthly, and average annual demand before applying for an initial city or county business license, equivalent approval, or permit.
• Requires the same sworn projections in initial city and county business-license, equivalent-approval, or permit applications.
• Requires renewal applications to report the prior calendar year's total and direct water use, water sources, and cooling-system type.
• Requires urban water suppliers to include unconstrained demand from data centers, irrigation, and other large users in annual water supply-and-demand assessments.
• Applies the city requirements to charter cities as a statewide water-conservation matter.

Who it affects ​

• Data-center owners and operators of all sizes.
• Community water systems and urban water suppliers.
• City and county business-licensing and permitting offices.

Breakdown ​

Data Center Water Use Reporting ​

The bill requires data center owners and operators to disclose expected water use before seeking an initial city or county business license, similar approval, or permit. They must give the same projected-use information to their water supplier and include it in their initial application. For renewals, they must report the prior year’s water use, including total and direct water use.

Key takeaways

• Before applying for an initial local license, approval, or permit, a data center must give its water supplier a good-faith estimate of expected water use and its anticipated water source.
• Initial applications to cities and counties must report projected water use for the maximum day, maximum month, and average year.
• Renewal applications must report the data center’s total and direct water use during the preceding calendar year.
• Required water-use reports must be made under penalty of perjury.
• The bill defines terms that apply to these reporting requirements.

Water Demand From Data Centers ​

The bill clarifies how urban water suppliers must assess water demand when planning for shortages. It says that current-year unconstrained demand must include, but is not limited to, demand from data centers, irrigation, and other large water users.

Key takeaways

• Urban water suppliers must account for data center demand when evaluating current-year unconstrained water demand.
• The bill also identifies irrigation and other large water users as demand that should be included in this assessment.
• This clarification applies to the annual water supply and demand assessment in each supplier’s water shortage contingency plan.
• The change is intended to ensure that water reliability assessments reflect demand that may occur without water-use constraints.

Statewide Application ​

The bill declares that its changes address a statewide concern, not just local municipal matters. As a result, the bill applies to every California city, including charter cities.

Key takeaways

• The bill makes findings that its subject is a matter of statewide concern.
• The bill states that its changes are not limited by a city’s local municipal authority.
• The bill applies to all California cities, including charter cities.

No State Reimbursement Required ​

This part says the state does not have to reimburse local agencies or school districts for costs caused by this law. It relies on a specified reason stated elsewhere in the act.

Key takeaways

• The bill states that no state reimbursement is required for this act.
• Local agencies and school districts cannot claim reimbursement under the state mandate reimbursement process for the covered costs.
• The digest does not identify the specified reason for denying reimbursement in this excerpt.