While San Francisco, Oakland and other Bay Area cities have hit pause on new data centers, San Jose is taking a different route. On Friday the city published a first draft of uniform rules for the giant computing facilities that power AI, and invited residents to help revise them.
What the draft would require
The standards cover what the city calls large-load data centers and research and development facilities, meaning projects with a power demand of 20 megawatts or more. Under the draft, those sites would have to run on 100% carbon-neutral electricity and could not use drinking water in open-loop cooling systems, which lose water instead of recirculating it. Backup generators would be limited to 25 hours of testing a year.
Projects would also need sound barriers and downward-facing, shielded lighting to cut glare for neighbors, plus annual city reviews of their power, water and sewer use. Developers would have to notify residents within 1,500 feet of a proposed site and meet state prevailing-wage and trained-workforce rules. The city is also considering developer fees for affordable housing and grid upgrades, and appeals on projects over 20 megawatts would go straight to the City Council.
Why San Jose wants them
Money is a big part of the calculation. San Jose expects multimillion-dollar deficits over the next two years, and officials project that each data center could bring in $3 million to $7 million a year, according to the Bay Area News Group. The mayor's office has said the city is tracking 12 applications for projects needing 20 megawatts or more.
Mayor Matt Mahan described the plan as a middle path between leaving the industry unregulated and banning it outright. City officials said public input from earlier outreach led to additions such as the generator limits and environmental monitoring.
How to weigh in
The city will hold 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., with an online option. After that, staff plan to take final draft standards to the Planning Commission on Nov. 18. The City Council is expected to take them up on Dec. 8, with a final vote planned for Dec. 15.
The local effort follows seven data center bills Gov. Gavin Newsom signed in September, which deal with ratepayer costs for grid upgrades, water-use transparency and limits on environmental review exemptions.