Senate Committee Advances Senator Cortese's Bill to Accelerate Economic Growth Through Data Center Expansion

In a 14-0 vote on Tuesday, the Senate Energy, Utilities and Communications Committee advanced Senator Cortese’s Senate Bill (SB) 1298. The legislation streamlines the approval process for data centers and maintains clear development guidelines, upholding California’s robust environmental standards and creating thousands of new construction jobs across the state.

SB 1298 seeks to meet the rapid demand for data centers from individuals, organizations, and industries in California by raising the threshold for data center eligibility under the Small Power Plant Exemption process from 100 megawatts to 150 megawatts, in adherence to California's rigorous clean air and clean energy standards. The bill is sponsored by the Silicon Valley Leadership Group, the leading business association representing Silicon Valley’s innovation economy and ecosystem.

“SB 1298 represents a balanced approach, boosting our technological capabilities to support the emerging digital economy while upholding the essential environmental standards that define our state,” said Senator Cortese (D-San Jose). “This bill keeps California at the cutting edge, facilitating growth while maintaining our commitment to environmental stewardship.”

“Data Centers underpin California’s innovation ecosystem, enabling our competitive edge in pioneering new and emerging digital services like AI, as well as sustaining the State’s critical infrastructure," said SVLG CEO Ahmad Thomas. "We applaud the Senate Energy, Utilities and Communications Committee for advancing SB 1298, which will unleash a new era of Silicon Valley innovation, create thousands of new jobs, support California’s ambitious electrification goals, and fuel economic growth to benefit all Californians.”

Senator Dave Cortese represents Senate District 15, which encompasses most of San Jose and much of Santa Clara County in the heart of Silicon Valley. Visit Senator Cortese’s website: https://sd15.senate.ca.gov

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