The San Jose City Council voted 8-0 on Tuesday, Oct. 20, to reject a labor-backed appeal and let a data center operate inside a North San Jose building at 300 Holger Way that is leased to Nvidia.
Why it matters: While Oakland, San Francisco, Hayward, Richmond and Gilroy have paused new data centers, San Jose is choosing permanent rules instead of a moratorium, and this was its first big test.
What was approved
- A special use permit for a data center using up to 20 megawatts inside an existing 97,800-square-foot research building just south of Highway 237, San José Spotlight reported.
- Only interior work, such as installing data racks. No new construction, which is why city planners said no full environmental review was needed.
- Nvidia already runs a chip testing lab there with a data hall supplied with 8.5 megawatts, according to a representative for owner Menlo Equities.
Who objected
The appeal came from Citizens for Responsible Industry, a coalition of labor groups and residents. Its attorney, Kelilah Federman, told the council that a 20-megawatt data center needs power, backup and cooling upgrades that pose environmental risks.
Councilmember Peter Ortiz was absent, and Vice Mayor Pam Foley recused herself over a financial conflict of interest, San José Spotlight reported.
What comes next
San Jose has released draft standards for data centers and other projects using 20 megawatts or more. The Planning Commission is set to review them in mid-November, with City Council hearings and a vote in December, San Jose Inside reported.
Neighbors are going the other way: Hayward approved a 45-day moratorium and Richmond extended its ban.