As reported by the Los Angeles Times, California lawmakers have reached a compromise on legislation to regulate the growing energy use by data centers. According to the lawmakers, the move is designed to protect consumers from growing energy costs due to the expanding data center industry. The proposed legislation would direct the California Public Utilities Commission (CPUC) to establish specialized electricity rates and rules for qualifying data centers, including provisions designed to prevent the costs of new grid infrastructure from being shifted to other utility customers.

The move by California lawmakers reflects a broader trend of concerns over data centers. Last month, Pennsylvania instituted stricter regulations that would require new data center projects to pay the full cost of energy usage. Similarly, Texas and New York took their own approaches to evaluate the development of new data centers and their impacts on the grid and electrical infrastructure.