The AI capital of the world doesn’t know how many data centers it has
San Francisco's planning department does not track data centers or have specific zoning designations for them, despite a private equity firm proposing a new facility. In response to this regulatory gap and a proposed data center development, Supervisor Shamann Walton has introduced a 45-day zoning moratorium to allow the city to develop proper definitions and controls for data centers.
San Francisco city officials, despite the city's status as an AI hub, currently lack a clear understanding of the number of data centers within its limits and do not possess specific land-use designations to regulate their development. Patrick Hannan, a spokesperson for the city's planning department, confirmed that data centers are not tracked, falling instead under an outdated "internet service exchanges" category from the dot-com era.
This regulatory gap comes as private equity firm Nestory Park Capital is reportedly pursuing a 1.6-acre data center project in the Dogpatch neighborhood, which would be the city's largest facility by size and electrical capacity. In response, Supervisor Shamann Walton, whose district includes the Dogpatch, introduced a 45-day zoning moratorium on new data center approvals. The proposed legislation, co-sponsored by Supervisors Connie Chan, Jackie Fielder, and Chyanne Chen, aims to pause development and compel city staff to create permanent controls and an official definition for data centers, addressing concerns about their impact on electricity and water resources.
Legal experts, including Dave Owen from UC Law San Francisco and Erin Ryan from USC, emphasize the critical role of specific land-use definitions for effective regulation, contrasting San Francisco's approach with cities like Gilroy and San Jose, which have moved to define and regulate data center development. Mayor Daniel Lurie's office also met with a lobbyist for Nestory Park Capital regarding planning and building permits for the Dogpatch site just weeks before Walton proposed the moratorium. The initiative highlights a growing tension between San Francisco's role as an AI leader and its preparedness to manage the infrastructure demands.