As concerns about data centers grow, San Jose reveals how it plans to regulate them

As concerns about data centers grow, San Jose reveals how it plans to regulate them

News ClipSiliconValley.com·San Jose, Santa Clara County, CA·10/9/2026

San Jose released draft regulations for large data centers, including clean-power requirements, restrictions on drinking-water use for cooling, generator-testing limits and neighborhood protections. The city will collect public feedback before presenting final standards to the Planning Commission and City Council for votes in November and December.

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Gov: City of San Jose, San Jose Planning Commission, San Jose City Council, Office of California Gov. Gavin Newsom

San Jose has released its first draft of uniform standards for large data centers and other high-consumption technology facilities. Sites using at least 20 megawatts would need to operate on 100% clean power, avoid drinking water in open cooling systems and limit backup-generator testing to 25 hours annually. The proposal also includes sound barriers, shielded lighting, usage monitoring and advance notice for nearby residents.

The rules were shaped by community concerns about noise, water, sewer capacity, energy demand and environmental impacts. City officials, including Mayor Matt Mahan and Deputy City Manager Manuel Pineda, say San Jose is pursuing targeted regulation rather than a temporary ban, while also considering developer fees to support affordable housing and grid improvements. Public feedback will be collected at an Oct. 15 forum, with the Planning Commission scheduled to review final standards Nov. 18 and the City Council expected to vote in December.