A spiking demand for AI is running through California. Multi-billion-dollar data centers will be popping up around California in the upcoming years. This means a number of things for Californians, for both local communities and statewide.
Most AI data centers span from the Sacramento area down to the Mexican border. The newer, modern facilities can take up millions of square feet in area. A new data center built by Imperial Valley Computer Manufacturing in Imperial County will cost billions of dollars to construct.
AI data centers are often built on flat, rural land. The new facility being constructed in Imperial County is located within one mile of multiple schools and neighborhoods. Data centers built in this close proximity to people’s homes raise concerns for the quality of living.
According to the Environmental and Energy Study Institute, large-scale data centers can use up to 5 million gallons of water per day. When data centers use the same water station as surrounding communities, it often decreases water pressure for others very rapidly due to the water consumption.
Construction of AI facilities is funded by privately owned companies such as Meta, Google, and Amazon. However, they don’t pay for everything. California ratepayers are expected to fill in the rest.
Utilities often have to build upgrades for their infrastructure to keep up with the power AI demands. These upgrades, however, aren’t always paid for by the companies that own the data centers. Instead, the cost is passed to ratepayers and comes out of utility bills.
AI needs an enormous amount of energy to function. This had led to a giant demand for electricity and water. When demand is this high for hundreds of AI data centers, the prices for Californians to use electricity and water increase.
California State Senator Steve Padilla’s district includes Imperial County. Padilla’s approach to protect ratepayers includes setting standards and regulations for energy usage within the data centers, which can be done through Senate Bill 887.
Protecting California’s ratepayers is also a large concern. California State Senator Jerry McNerney introduced Senate Bill 1168 in February 2026. This bill would lower utility costs for California ratepayers.
If this bill passes, surcharges will be imposed on AI companies and other large energy users. The extra money paid by these companies will be used to pay for needed infrastructure upgrades, instead of passing the cost to ratepayers.
Any concerns you have regarding AI or the bills mentioned can be expressed to our California senators. You can contact Senators Alex Padilla and Adam Schiff using the senate.gov website and filling out a contact form
