San Jose released its first draft of rules for large data centers on Friday, taking a different path from San Francisco and Oakland, which have paused new projects. Rather than a ban, the city wants a set of uniform standards that every big facility would have to meet.
What the draft would require
According to Bay Area News Group, facilities drawing 20 megawatts or more could not use drinking water in open cooling systems, which lose water instead of recirculating it. They would have to run on 100% clean power and could test backup generators for no more than 25 hours a year. Sites would also need sound barriers, downward-facing shielded lighting, and annual city checks on power, water and sewer use.
Developers would have to meet state prevailing-wage and skilled-workforce requirements and notify residents within 1,500 feet of a proposed site. The city is also considering developer fees for affordable housing and grid upgrades.
Why San Jose wants them
Money is a big part of it. The city expects multimillion-dollar deficits over the next two years, and officials project each data center could bring in $3 million to $7 million a year. Mayor Matt Mahan described the plan as a "middle path" between banning data centers and leaving them unregulated. In the city's announcement, he called the proposals "some of the strictest standards in the country."
City staff said they held dozens of community meetings between August and October, and that resident feedback led to additions such as the generator limits and environmental monitoring. The draft also comes after Gov. Gavin Newsom signed seven data center bills in September covering grid costs, water-use transparency and environmental review.
How to weigh in
The city will present the draft at a community meeting on Thursday, Oct. 15, from 6 to 8 p.m. in the City Hall Council Chambers at 200 E. Santa Clara St. People can also join on Zoom or watch on the city's YouTube channel, and live translation will be available. After that, the standards go to the Planning Commission on Nov. 18, with City Council votes expected Dec. 8 and Dec. 15.