Papan Bill to Track Data Center Water Use Wins Final Legislative Approval

Sacramento, CA – Today, the California State Legislature approved Assembly Bill 93, authored by Assemblymember Diane Papan (D–San Mateo), requiring data centers to disclose and certify their water consumption as part of the local business licensing process. 

With artificial intelligence fueling explosive growth in data centers, the facilities’ outsized water demand has drawn growing concern. Data centers already rank among the most water-intensive commercial industries, consuming between 300,000 gallons and 5 million gallons of water daily—the equivalent usage of a small to mid-sized town. This unprecedented demand requires new approaches to demand management particularly as many data centers are built in water-stressed regions where electricity is cheap but water is scarce.

“With the rise of artificial intelligence and data-driven technologies, we must manage our resources responsibly,” said Papan. “Assembly Bill 93 will help ensure that the expansion of data centers do not threaten our communities’ most precious resource—water.”

Assembly Bill 93 ensures that local governments and water suppliers have the information necessary to plan responsibly for new or expanding data centers. The bill requires data centers to report expected water use to their supplier prior to applying for a business license; certify that the facility disclosed its projected water use at the time of business license application; and certify actual annual water use at the time of business license renewal.

California has seen firsthand how severe droughts and climate-driven water scarcity strain households, farms, and ecosystems. Without proper oversight, uncontrolled expansion of data centers could threaten water security across the state.

“Every drop counts,” said Papan. “Assembly Bill 93 equips communities with the tools they need to understand and manage the impacts of these facilities before they jeopardize water supplies. This is about protecting future generations while ensuring California remains a leader in innovation.”

Assembly Bill 93 is now enrolled to the Governor who has until October 12, 2025 to sign or veto the legislation.

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