SB 1298 (Cortese) is sponsored by the Silicon Valley Leadership Group
SACRAMENTO (August 15, 2024) – The California Assembly Appropriations Committee has passed SB 1298, a bill authored by Senator Dave Cortese to expand data center capacity and bolster the state’s critical infrastructure. The legislation represents a significant investment in the foundation of the region’s innovation economy and technology sector.
“Expanding our data center infrastructure is essential for the continued growth and competitiveness of our tech industry, supporting economic development throughout California,” said Senator Cortese (D-San Jose). “SB 1298 offers a commonsense solution to meet the increasing demand for data centers while maintaining our commitment to environmental standards, ensuring that Silicon Valley and the Bay Area remain at the forefront of global innovation.”
Sponsored by the Silicon Valley Leadership Group (SVLG) and supported by the Data Center Coalition (DCC), the legislation aims to streamline approval processes for data centers, raising the eligibility threshold under the Small Power Plant Exemption process from 100 megawatts to 150 megawatts, while adhering to California’s robust environmental guidelines.
“We applaud Senator Cortese for his continued leadership in advancing crucial legislation to meet our region’s pent-up demand for data centers,” said SVLG CEO Ahmad Thomas. “SB 1298 would ensure Silicon Valley and the Bay Area remain the global epicenter of innovation, unleashing a fresh wave of high-ROI investments and generating thousands of jobs for communities across the Golden State.”
Data centers serve as the backbone of the innovation economy’s cloud-based ecosystem and are crucial for critical services like hospitals and emergency call centers. However, the demand for larger and more powerful data centers is rapidly outpacing the existing supply, with Silicon Valley’s current vacancy rate for data centers at a mere 1.6% — making it one of the hottest data center markets in the country.
SB 1298 seeks to improve upon the current approval process for data centers while maintaining clear guidelines for development and upholding California’s commitment to statewide environmental regulation.
The bill’s passage through the Assembly Appropriations Committee marks a significant step towards addressing the high demand for larger and more powerful data centers, ensuring the resilience and growth of California’s economy.
The bill will now head to a full floor vote in the California State Assembly.
About the Silicon Valley Leadership Group:
The Silicon Valley Leadership Group (SVLG) is the leading business association representing the innovation economy and its ecosystem. Founded by David Packard of Hewlett-Packard, SVLG has worked for 45 years to address issues that affect the region’s economic health and quality of life. Today, SVLG Is focused on accelerating the next era of Silicon Valley leadership, activated by our three new Centers of Expertise (COE). Innovation & Technology, Sustainable Growth, and Inclusion & Belonging. SVLG members collectively provide nearly one of every three private sector jobs in Silicon Valley and contribute more than $3 trillion to the worldwide economy. For more information, visit svlg.org.
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