San Jose has released draft standards for data centers and other power-hungry projects that city leaders describe as some of the strictest in the country, and it will take public comment at a community meeting on Thursday, Oct. 15.
What the draft would require
The rules would cover data centers and research facilities that draw 20 megawatts or more. Cooling systems would have to run on recycled water from the South Bay Water Recycling system or use low-water designs such as closed-loop or air-cooled systems, and open-loop cooling with drinking water would be banned. Projects would need 100% carbon-neutral electricity, which signing up with San José Clean Energy would satisfy.
Backup generators would have to meet the EPA's cleanest Tier 4 standard, run only during outages, and be tested no more than 25 hours a year on weekday business hours. Operators would file yearly reports on sewer discharge and noise near homes, and face audits if actual energy or water use runs above what their environmental review assumed. Neighbors within 1,500 feet would be notified of new projects, and appeals of large projects would go to the City Council.
The city is also studying an affordable housing fee of about $4 to $5 per square foot for data centers and an energy reliability fee of roughly $50,000 per megawatt. Both figures are still under study, and the whole package is a draft.
How it got here and what is next
The effort traces to a June 10 recommendation from Mayor Matt Mahan and Councilmembers David Cohen, Peter Ortiz and Domingo Candelas. City staff say they held dozens of meetings from August through October, including a listening session with about 200 people in person and 130 online, and tightened several provisions based on feedback. The proposal goes to the Planning Commission on Nov. 18, with council votes tentatively set for Dec. 8 and Dec. 15.
Next door, Santa Clara's council spent its Oct. 6 meeting on data center water and air quality. City Manager Jovan Grogan said the city has not approved a new data center since 2023, and that data centers add $35.2 million a year to its general fund. A proposed moratorium from Council Member Karen Hardy was pushed to a later meeting, and the council sent the water and air items back to staff.
The San Jose meeting runs 6 to 8 p.m. in the City Hall Council Chambers at 200 E. Santa Clara St., with a Zoom option.