Water resources: demands: data centers.

Assembly Member Papan's data center water regulation measure establishes new reporting requirements and efficiency standards for computing facilities across California, creating a three-tiered classification system based on facility size and power consumption. The legislation requires data centers to submit water usage estimates when applying for business licenses and report actual consumption figures during renewals, with statements made under penalty of perjury.

Local jurisdictions must set water efficiency standards for data centers as a condition of licensing, with the ability to impose stricter requirements on larger facilities. These standards may include closed-loop systems, nonpotable water usage, and rainwater capture infrastructure. The Department of Water Resources and State Energy Resources Conservation and Development Commission must develop natural resource usage guidelines by 2028 that align with urban water objectives and federal Energy Star Program specifications.

The measure also expands water usage demand analysis requirements for public entities, mandating the inclusion of data center consumption volumes alongside existing metrics for high-volume users. The bill's provisions apply uniformly across all California cities, including charter cities, based on legislative findings that water conservation constitutes a matter of statewide concern rather than a municipal affair.