California passes bills to shield ratepayers from data center power costs

California lawmakers passed bills that would create separate electricity tariffs for large data centers, sending the legislation to the governor for approval. The measures aim to protect residential ratepayers from bearing data center power costs.

Why it matters: This is one of the more concrete legislative responses yet to AI-driven data center electricity demand, following growing public backlash over rising utility bills tied to new AI infrastructure. If signed, California's separate-tariff approach could become a template other states adopt as more regions confront the same cost-shifting concerns.