Senator Pérez introduces legislation to protect communities amid unprecedented growth of data centers
SACRAMENTO – Senator Sasha Renée Pérez (D-Pasadena) has introduced SB 978, the Data Center Community Accountability Act, to protect Californians and utility ratepayers as large data centers rapidly expand across the state. California is home to roughly one third of the nation’s data centers and demand is projected to surge in the coming years, and in communities like Monterey Park, that growth has sparked strong community concerns.
“I have heard urgent calls from my constituents, and others throughout the state, to regulate data centers and their impacts on energy, water and pollution. SB 978 bans the use of backup diesel generators that emit air pollution, prevents data centers from placing electricity costs onto ratepayers and directs state regulators to assess the impacts of data centers on California’s ability to meet its climate goals,” said Senator Pérez.
The largest data centers, known as hyperscale facilities, are used for largescale data storage, cloud computing, and artificial intelligence. These massive centers consume 10 to 50 times more electricity per square foot than a typical commercial office building. National estimates project data center electricity use could double or triple by 2028, representing up to 12% of all U.S. electricity consumption. This unprecedented growth would place significant strain on California’s electrical grid and could shift billions in new infrastructure costs onto residential and commercial ratepayers.
Additionally, recent analyses from state agencies and academic researchers warn that unchecked data center could also worsen air quality. Backup diesel generators alone could impose up to $266 million in public health costs by 2028, with emissions that push local air quality beyond health-based limits.
“Energy bills continue to skyrocket in California, especially burdening low-income people. At the same time, clean air remains a pipe dream for environmental justice communities across the state. It is critical that major energy guzzlers - like data centers - do not increase energy bills for California consumers, while requiring a stop to their pollution of nearby communities with dirty diesel emissions. We applaud Senator Perez for championing this important issue," said Asha Sharma, State Policy Manager, Leadership Counsel for Justice and Accountability.
SB 978 would mitigate many of the environmental, community, and workforce impacts of data center growth by:
- Mandating the use of clean backup generation, banning diesel generators and their harmful air pollution that disproportionately affects nearby communities.
- Directing the California Energy Commission (CEC) to report on hyperscale data center impacts to meeting the state’s climate goals.
- Ensuring all hyperscale data center construction uses a local, skilled workforce and pays prevailing wages.
- Requiring upfront payment for transmission upgrades needed to serve qualifying data centers.
- Creating a separate rate class for data centers operating above 75 MW, recognizing their unique and intensive load characteristics.
“This legislation would protect California’s ratepayers from seeing their electricity bills rise due to data centers. We’ve also heard community concerns that development pressures could extend into disaster-impacted communities where they do not align with recovery priorities or local community needs. SB 978 makes California’s position clear: data centers will not be built without strong community oversight, environmental review and fiscal accountability,” concluded Senator Pérez.
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Senator Sasha Renée Pérez is Chair of the Senate Education Committee and represents the 25th Senate District that includes the communities of Glendale, Pasadena, Alhambra, Altadena, Arcadia, Claremont, Glendora, La Cañada Flintridge, La Crescenta-Montrose, Monrovia, Monterey Park, Rosemead, San Gabriel, San Marino, Sierra Madre, South Pasadena, Temple City, Fontana, Rancho Cucamonga, Upland, and San Antonio Heights.