California Prop 45 Faces Data Center Loophole Concerns

Environmental advocates warn that Proposition 45 in California could create a loophole allowing data center developers to evade public scrutiny. The measure makes it easier for developers to speed through environmental reviews by shortening timelines for state-mandated assessments. It also makes it more difficult for residents to challenge projects in court. Proponents argue the measure helps alleviate California's housing shortage and meets rising electricity demand with new renewable energy projects.

Fernando Gaytan, a senior attorney at Earthjustice, warned that data center developers might shoehorn their projects into the definition of an essential project to take advantage of fast-track reviews. Proposition 45 lists nine types of essential projects eligible for streamlined review, including broadband Internet access. Legal experts contend that this designation could include data centers, especially those with broadband transmission infrastructure. The measure creates a 365-day deadline for environmental impact reports and limits public comment to 45 days.

Attorney Kurt Oneto argues that Proposition 45 would not apply to data centers because their role in supporting the Internet does not make them essential broadband projects. Opponents worry the measure could disempower communities by reducing public participation. Companies developing data centers have poured hundreds of thousands of dollars into a campaign to support the proposition.