Prop. 45 Puts Data Center Rules in Doubt

Proposition 45 is presented as a way to speed construction, particularly housing, but opponents warn its changes to California’s environmental review law could also benefit data center developers. The measure does not name data centers as a category of project eligible for faster review, yet its language covers broadband facilities and infrastructure needed to support covered projects.

Prop. 45 Could Undercut California’s Data Center Safeguards

Proposition 45’s promise of faster construction comes with a serious risk: its broad language could open a path for data centers to avoid environmental scrutiny and local resistance. Although the measure is framed around projects such as housing and schools, it streamlines review for broadband facilities and related infrastructure—language critics say could sweep in data centers.

The measure would also set shorter time limits for environmental assessments, permits and legal challenges, limit public comment periods, and narrow what courts may consider in lawsuits. Supporters call that a faster process; critics see a rollback of protections and community input.

That risk comes as California has enacted seven laws aimed at data centers, including requirements concerning water-use disclosure, grid upgrades and environmental review. No fewer than 26 municipalities and counties have put forward or approved restrictions, including moratoriums and bans.

The Data Center Coalition says the facilities are outside Proposition 45’s scope, and a state legislative counsel memo likewise argues that its definitions do not apply to them. But the coalition’s position has not quieted legal scholars and environmental advocates, who warn that ambiguity could lead to court fights and costly disputes for local governments.

Corporate supporters have contributed more than $10 million to the campaign supporting Prop. 45, with $3.05 million coming from PG&E and $500,000 from Prologis. Opponents argue that the measure’s potential beneficiaries deserve scrutiny as voters consider whether streamlining is worth weakening safeguards.

Prop. 45 Offers a Chance to Cut California’s Building Delays

California’s housing shortage and high prices have made construction delays a pressing concern, and Proposition 45 would target the environmental review process that critics say can slow projects and raise costs. The measure would set stricter timelines for reviews, permits and court challenges, while limiting repeated agency requests and capping public comment periods.

The dispute over data centers highlights the stakes. Opponents argue the measure’s provisions for broadband facilities and supporting infrastructure could give data center projects a route to faster review, potentially overriding newer state safeguards. But the Data Center Coalition says data centers do not qualify, and a legal memo from the state’s Office of Legislative Counsel also argues the measure’s definitions do not cover them.

Critics of Proposition 45 say faster approvals could come at the expense of environmental protections and local authority. They point to communities where 26 or more municipalities and counties have put forward or adopted data center restrictions, amid concerns about water use, electricity costs and grid capacity.

The measure would not explicitly list data centers among the projects it streamlines, while it does name some projects excluded from the process. Legal scholars say that wording could invite lawsuits; environmental advocates warn local governments may bear the cost. The disagreement underscores a broader choice for voters: whether tighter limits on review and litigation can make construction move faster without sacrificing too much oversight.

Supporters of the measure include corporate interests that have contributed more than $10 million to its campaign, among them PG&E and Prologis. The Data Center Coalition is also backing Proposition 45 while maintaining that its facilities are not covered.