Gov. Gavin Newsom (D-Calif.) says California has enacted new data center protections aimed at increasing oversight of rapidly expanding data centers and preventing their electricity, water and infrastructure costs from being shifted onto local communities and ratepayers. He also took a swing at President Donald Trump's approach to deregulation.

Newsom Targets Trump

On Monday, Newsom said on X that California had enacted the "STRONGEST data center protections in the nation."

"We're protecting Californians from higher costs and giving communities more control over their electricity, water, and land," he added.

He contrasted California's approach with Trump's policies, saying the president "pushes deregulation and lets industry reap massive profits at the expense of working people."

"We're making sure Californians remain in the driver's seat," Newsom added.

Newsom Orders AI Oversight

Last week, Newsom ordered officials to accelerate AI oversight and develop recommendations for an emergency "kill switch" for frontier AI models.

Newsom's order directs officials to implement recently enacted laws establishing independent AI verification organizations and a registry for AI auditors.

Experts will also study whether frontier AI companies should have independent evaluators onsite and whether advanced models need emergency shutdown mechanisms.

"The federal government's abject failure to create any form of meaningful AI oversight or accountability should alarm every American," Newsom said.

He added, "With Donald Trump and Congress failing to lead, California is stepping up to keep all Americans safe."

Debate Over AI Data Centers

Last month, Nvidia Corp (NASDAQ: NVDA) CEO Jensen Huang defended the U.S. AI data center boom, saying it could boost manufacturing, create jobs and strengthen the power grid while urging developers to work with communities.

Rep. Ro Khanna (D-Calif.), however, warned that data centers were increasing environmental and infrastructure pressures and shifting costs to residents and utility ratepayers.

He supported giving communities more power to oppose projects.

Meanwhile, investor Kevin O'Leary defended modern data centers over water-use concerns, arguing that newer facilities used closed-loop cooling systems and should not be compared with older facilities.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.