Assemblymember Papan Expresses Disappointment, Urges Continued Action to Address Growing Water Demands from Expanding AI Industry
Sacramento, CA – Governor Gavin Newsom has vetoed Assembly Bill 93, legislation authored by Assemblymember Diane Papan (D–San Mateo), that would have required 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, concerns have mounted over the industry’s outsized water demand. Data centers already rank among the most water-intensive commercial operations, consuming between 300,000 gallons and 5 million gallons of water daily—the equivalent usage of a small to mid-sized town. Many of these facilities are located in water-stressed regions where electricity is affordable but water is increasingly scarce.
“I am deeply disappointed that the Governor chose to veto this measure,” said Assemblymember Papan. “AB 93 represented a reasonable, transparent approach to understanding the massive water demand driven by AI and data center expansion.”
AB 93 would have ensured that local governments and water suppliers had the data necessary to plan responsibly for new or expanding data centers. The bill required 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 continues to experience the effects of severe droughts and climate-driven water scarcity, placing tremendous pressure on households, farms, and ecosystems. Without greater oversight, uncontrolled expansion of data centers could exacerbate water insecurity across the state.
“Every drop matters in California,” Papan said. “While I am disappointed by this veto, I remain committed to working with the Governor’s Office, environmental advocates, and industry leaders to ensure we strike the right balance between technological innovation and sustainable resource management.”