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AB 222

Data centers: power usage effectiveness: cost shifts.

2025-2026 Regular Session Introduced by Rebecca Bauer-Kahan

AB 222 establishes power efficiency standards for California data centers and addresses cost allocation among operators, utilities, and ratepayers.

In committee: Held under submission.
#datacenters #costshifts #powerusageeffectiveness
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Bill Summary · AB 222

Legislative bill overview

AB 222 addresses data center energy efficiency and cost allocation in California by establishing power usage effectiveness (PUE) standards and potentially shifting associated costs. The bill has progressed through multiple committee stages with amendments, currently held in the appropriations committee pending further action.

Why is this important

Data centers consume significant electricity and generate substantial operational costs that can affect California's grid strain and energy prices. How these costs are allocated—whether to data center operators, utilities, or ratepayers—directly impacts tech industry competitiveness, electricity rates for consumers, and the state's ability to meet climate and grid reliability goals.

Potential points of contention

  • Cost burden allocation: Unclear whether efficiency requirements impose new costs on data center operators, utilities, or are passed to general ratepayers
  • Competitive impact: Strict PUE standards could increase operational expenses for California data centers versus out-of-state competitors
  • Implementation feasibility: Questions about whether existing data centers can meet new efficiency standards and associated retrofit costs

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

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