Written Testimony for the Little Hoover Commission Hearing on Electricity and Data Centers

Key Takeaways

• Data centers present significant human rights risks, deeply impacting the right to health due to air and noise pollution. The environmental effects of operating data centers, particularly through diesel backup generators, exacerbate health disparities, especially in low-income communities.
• Data centers consume vast amounts of water, jeopardizing communities’ rights to safe water and sanitation. Their water usage competes with residential needs and agricultural activities, intensifying strain on local water resources and potentially increasing costs for residents.
• The rapid growth of data centers can detrimentally affect housing availability and affordability by allocating essential resources like electricity and water away from residential areas. This could exacerbate California’s existing housing crisis, particularly through rising utility costs and environmental degradation.
• There are gaps in the regulatory oversight of data centers in California. While existing regulations on data center development and operation exist, enforcement and additional policies are needed to address human rights risks and resource usage effectively.
• Regulatory proposals, such as the California Public Utilities Commission’s (CPUC) Rule 30, are under consideration to manage the distribution of transmission upgrade costs among data centers and other ratepayers. Yet, these proposals highlight ongoing debates about cost allocation fairness and project transparency.
• Calls for increased transparency and public disclosure on data centers’ resource consumption underscore the need for improved public access to information. This transparency is vital for communities to assess and engage in decisions impacting their environment and resource availability.
• The enforcement of existing regulatory frameworks and the creation of new laws are essential to protect communities from the adverse impacts of data centers. Coordination across state agencies like the CPUC and the California Energy Commission is crucial for sustainable development.
• Efforts to regulate data centers have been uneven, with legislative cycles not fully addressing the complexities or introducing robust protections for communities affected by data center growth. This calls for ongoing advocacy and policy refinement to safeguard community rights and environmental health.