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SB 978

Data centers: labor: electricity rates.

2025-2026 Regular Session Introduced by Jesse Arreguín and 7 co-sponsors

SB 978 establishes labor standards and electricity rate regulations for California data centers to balance worker protections with operational sustainability in the tech industry.

Set for hearing April 8.
#datacenters #electricityrates #labor
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Bill Summary · SB 978

Legislative bill overview

SB 978 addresses labor standards and electricity rate structures for data centers operating in California. The bill has progressed through committee stages with amendments, currently awaiting hearings in the Labor, Public Employment & Retirement Committee and the Energy, Utilities & Commerce Committee.

Why is this important

Data centers consume significant electricity and employ thousands of workers in California. This legislation could establish precedent for regulating labor conditions and utility costs in a high-growth industry sector, affecting both operational expenses for tech companies and worker protections and energy affordability for residents.

Potential points of contention

  • Labor standards vs. industry competitiveness: Stricter labor requirements could increase operational costs for data center operators, potentially affecting California's attractiveness as a location compared to other states with looser regulations
  • Electricity rate implications: Differential or regulated rates for data centers could shift costs to other ratepayers or affect grid investment, creating tension between subsidizing tech infrastructure and overall energy affordability
  • Scope and definition ambiguity: The bill's specific provisions on which labor standards apply and how electricity rates would be structured remain unclear from legislative history, suggesting ongoing debate about implementation details

Compiled from official sources — confirm details with the bill’s official record.

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