Bill > SB887

This bill defines "data centers"—facilities that house computing infrastructure like servers and networking equipment used to process and store electronic data—and prohibits them from using standard categorical exemptions under the California Environmental Quality Act (CEQA), a state law requiring environmental reviews for projects that may affect the environment. Contextually addressing the massive surge in electricity and water demand driven by artificial intelligence and data center expansion, the bill allows the Governor to certify certain data centers and geothermal powerplants as "environmental leadership development projects," granting them streamlined CEQA processing if they meet rigorous conditions. These conditions include paying upfront infrastructure costs to protect ordinary ratepayers from price hikes, avoiding fossil fuel consumption, utilizing water-efficient or waterless cooling systems, and eventually relying exclusively on zero-carbon electricity. Additionally, the legislation mandates that any greenhouse gas emissions from these newly eligible data centers and geothermal projects must be mitigated following a strict priority system that favors direct, local emission reductions and community-benefit agreements over traditional offsets.