Updated
Updated · POLITICO · Jun 16
Newsom Resists Data Center Crackdown as California Faces 24% Capacity Growth
Updated
Updated · POLITICO · Jun 16

Newsom Resists Data Center Crackdown as California Faces 24% Capacity Growth

3 articles · Updated · POLITICO · Jun 16

Summary

  • Gavin Newsom is largely refusing to make data centers a signature target even as other Democratic governors tighten rules, opening an early policy split in the 2028 field.
  • Newsom argues the fight is misdirected, saying AI’s threat to jobs matters more than blocking server farms, while allies say he wants to stay pro-innovation and avoid alienating major tech donors.
  • California has had more room to stay cautious because planned and under-construction data centers would expand capacity by 24%, far below Pennsylvania’s 121%, Maryland’s 132% and Illinois’ 144%.
  • That buffer is narrowing: Monterey Park this month voted to permanently ban data centers, more than two dozen California groups joined a national coalition, and over two-thirds of California voters oppose new local projects.
  • Sacramento may soon force the issue anyway, with bills advancing on how much data centers should pay for electricity after Newsom previously vetoed a water-disclosure measure and signed only a cost-shift study.

Insights

With cities banning data centers, is a statewide policy battle over local control of California's tech future inevitable?
Data centers offer few jobs but consume vast resources. Is California sacrificing its environment for a 'false promise' of tech growth?