California’s 2025 data center regulations failed, leaving only a delayed study on grid impacts.

California’s 2025 efforts to regulate data centers stalled after industry opposition blocked key measures like carbon-free electricity mandates and separate power rates. Governor Newsom vetoed a water-use reporting bill, and lawmakers dropped proposals for battery storage and grid cost reforms. A weakened law now requires a study on data centers’ impact on electricity rates and grid reliability by 2027, but offers no immediate regulatory authority. Industry groups warn strict rules could drive investment to states like Texas, while critics argue the lack of oversight risks grid strain and unfair cost shifts. The study’s findings won’t inform policy until after the 2026 session.