San Jose released the first draft of citywide rules for big data centers on Friday, Oct. 9, choosing to regulate the power-hungry buildings rather than pause them the way San Francisco did earlier this week.
What the draft would require
The standards would cover what the city calls large load data centers and large load research and development facilities, meaning sites with a power demand of 20 megawatts or more, according to the city's announcement. The Mercury News reported that those facilities would have to run on 100% clean electricity, could not use drinking water in open cooling systems that lose water instead of recirculating it, and would be limited to 25 hours a year of backup generator testing.
Neighbors would get protections too. The draft calls for sound barriers, downward-facing shielded lighting and yearly city checks on each site's power, water and sewer use, the paper reported. Developers would have to notify residents within 1,500 feet of a proposed site and meet state prevailing wage and skilled workforce rules. The city is also weighing fees that would go toward affordable housing and grid upgrades.
Why San Jose wants them
The mayor's office says the city is tracking 12 applications for projects that need 20 megawatts or more. Each data center is projected to bring in $3 million to $7 million a year, the Mercury News reported, money the city is counting on as it faces deficits over the next two years.
"We have found a middle path," Mayor Matt Mahan said, according to the paper. "We have not defaulted to unfettered capitalism, nor have we put our head in the sand and tried to ban change." In the city's release, Mahan said San Jose is proposing "some of the strictest standards in the country."
The draft also builds on seven bills Gov. Gavin Newsom signed in September that shield ratepayers from grid upgrade costs, require more transparency on water use and limit environmental review exemptions for these facilities, the city said.
How to weigh in
The city will present the draft and take comments on Thursday, Oct. 15, from 6 to 8 p.m. in the City Hall Council Chambers at 200 E. Santa Clara St., with an online option. After that, staff plan to bring final standards to the Planning Commission on Nov. 18, and the City Council is expected to take them up Dec. 8, with a final vote Dec. 15, the Mercury News reported.