Regulating the AI Boom: California Passes a New Package of Laws that Change the Game for Data Center Development

California just became the latest state to turn up the heat on data center regulation in a move that could curtail the state’s positioning in the AI arms race. On September 21, 2026, Governor Gavin Newsom signed a package of seven new bills, which he branded as “the most comprehensive data center laws in the nation.” Collectively, the new bills seek to impose greater transparency and regulatory control over data centers’ electricity use, water consumption, and land use impacts, while aiming to prevent infrastructure and generation costs from being shifted to existing ratepayers. Edgar Khalatian and Nedda Mahrou, land use partners at Mayer Brown with extensive experience entitling data centers, will walk through the key provisions of each bill. Attendees will come away better equipped to navigate California’s new regulatory framework in the data center space.

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