Oakley extends ban on data centers

News ClipThe Mercury News·Oakley, Contra Costa County, CA·5/19/2026

The Oakley City Council has unanimously extended its moratorium on data center development until April 14, 2027. This extension provides city officials two years to fully evaluate the impacts of data centers and draft a permanent ordinance for regulating such uses. The decision follows community pushback over concerns about excessive water and energy consumption.

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Gov: Oakley City Council, Oakley City Attorney, Oakley Planning Commission

The Oakley City Council has voted unanimously to extend its temporary moratorium on data center development, initially approved last month, until April 14, 2027. This decision prohibits the city from accepting, processing, or approving any new land use applications for data centers for the next two years, the maximum allowed under state law for such a pause.

According to City Attorney Derek Cole, the extended moratorium will enable city officials to thoroughly assess the environmental and resource impacts of data centers. A staff report indicates the Council plans to hold multiple joint planning sessions with the Planning Commission to gather public input, discuss potential impacts, and develop a framework for new zoning regulations. This move comes after a specific development, the Bridgehead Industrial Project, withdrew its data center component in March following significant community opposition regarding water and energy usage concerns.

Residents, including one at the May 12 council meeting, expressed worries about the substantial water consumption of data centers, particularly those supporting artificial intelligence technologies, and their potential strain on agricultural communities in Oakley and nearby Brentwood. Councilmember George Fuller supported the extended pause, advocating for the city to develop clear standards and potentially hire outside consultants to better understand data center requirements and impacts. This action reinforces Oakley's position as the first city in the Bay Area to implement such a ban.