Tucked away in nondescript buildings, data centers store and transmit the contents of the internet.

At least one data center is involved every time you watch a TikTok video or shop on Amazon.

In recent years, artificial intelligence, and especially programs like ChatGPT, have caused server farms to multiply.

That means more power plants to build and more transmission lines to run.

The prospect leaves state regulators concerned that the general public will be on the hook for big tech's electricity binge.

California lawmakers are responding with proposed bills to ensure that electricity customers don't pay for the infrastructure that utility companies build to serve data centers.

The bills also encourage more energy efficiency or clean energy use by tech companies, entrepreneurs, and IT departments that use data centers.

Democratic State Senator Steve Padilla of Chula Vista would require utility regulators to draw up an electricity rate structure specifically for data centers.

Another bill from Padilla would give data center operators a tax cut if they create at least 20 jobs and draw 70% of their energy from zero-emission sources.

Certainly, electricity demand, how we regulate it, how we portion it, how we provide for it, it's cost, cost, cost.

Everything we do affects that, and now we have a new demand right here.

It's important.

There is evidence, albeit inconclusive, that California data centers could already be fueling higher costs and plans to incur them.

In January, the municipal utility company in Santa Clara announced a 5% rate increase for all customers due to "critical infrastructure projects".

Santa Clara is the busiest city in California for data center activity, with more than 50 server farms gobbling up 60% of energy from the utility.

For CalMatters, I'm Kari Johnson.