The data center backlash is here — and Big Tech is spending big to combat it

Data center construction has become a contentious issue in California, prompting a surge in legislative proposals and a substantial lobbying effort from affected industries. With public opposition growing, technology companies and utility providers are investing heavily to influence pending bills that would impose stricter regulations on data centers.

Seven bills aimed at regulating data center operations are advancing through the California Legislature this week. Major corporations, including Amazon, Anthropic, and utility giant Pacific Gas & Electric (PG&E), have significantly increased lobbying expenditures in response. According to state filings, PG&E spent $2.86 million lobbying between April and June—the second-highest quarterly total since 1999. The company claims less than 5% of that spending, roughly $143,000, was directed toward data center-related issues.

Public concern over data centers has intensified, driven by worries about rising utility costs, excessive water consumption, and strain on the electrical grid. A May Gallup poll found that 70% of Americans oppose local data center construction, while a Public Policy Institute of California survey in July revealed similar statewide opposition. These concerns have led numerous cities, including Monterey Park and Pittsburg, to impose or consider bans on new facilities.

State Senator Steve Padilla, a Democrat from Chula Vista and author of two pending data center bills, described the political climate as one of heightened awareness and bipartisan concern. "The level of awareness is through the roof, and the level of concern and sensitivity is through the roof—it's bipartisan, it's national, and it's across the board," he stated.

Tech companies are also ramping up lobbying efforts. Amazon reported spending over $500,000 in the first half of 2026 on 33 bills, including multiple data center proposals, and more than $1.7 million in California last year. Anthropic, a leading AI firm that entered the lobbying arena in 2025, has spent nearly $90,000 this year and significantly increased its federal lobbying presence as well.

Industry groups representing Big Tech firms have also allocated substantial funds. The Silicon Valley Leadership Group, which includes Apple and Amazon among its members, has spent over $100,000 lobbying on relevant legislation this year. The Data Center Coalition, whose members include Google, Microsoft, and OpenAI, has reported its second and third highest lobbying expenditures on record, totaling approximately $60,000 so far in 2026.

The proposed bills vary in scope but generally aim to increase transparency around data centers' energy and water usage, impose stricter environmental review processes, and shift infrastructure costs from ratepayers to data center operators. Opponents argue that excessive regulation could hinder innovation and economic growth, while supporters emphasize the need to protect public resources and prevent unfair financial burdens on consumers.

Community groups, such as the organization opposing Amazon's $2 billion data center project in Gilroy, have criticized the industry's lobbying efforts. "They're spending so much because there's so much at stake," said Britt Smith, a member of the group. "Our future, our safety, is not for sale."

The Legislature is expected to determine which bills advance to Governor Gavin Newsom's desk by the end of September. The outcomes could have far-reaching implications for data center development, environmental policy, and the regulatory environment for California's technology sector. Lawmakers and advocates nationwide are closely monitoring the situation, as California's decisions may set a precedent for similar debates across the country.