California's Seven Data Center Laws Meet Bay Area City Responses
A Holland & Knight alert examines how Bay Area cities are responding to seven California data center laws signed September 21, 2026, covering review, power supply and water.
Holland & Knight's October 21 alert builds on its earlier note that California Governor Gavin Newsom signed seven data center laws on September 21, 2026, which will change how new data centers are reviewed, how they are powered and how they are supplied with water. The current alert turns to the municipal layer, framing the question as pause or playbook: whether Bay Area cities freeze new entitlements while the state framework settles, or issue local rules that condition approvals on power, water and environmental review. This alert does not itemize the specific cities or the operative provisions, so those mechanics remain unconfirmed in this source.
Why sophisticated counsel and clients care: for data center developers, real estate investors, utilities and technology tenants, the municipal approval calendar is now a binding constraint on site selection, capital deployment and lease commencement. Power availability, water supply and review timelines convert directly into schedule risk, carrying cost and valuation, and they sit alongside grid, rate and permitting exposure.
What to watch next: individual city council ordinances and any moratorium actions, the environmental review pathway each new law requires, and how utilities and water agencies respond to the state mandates.