As San Jose presents draft rules for data centers, many still call for a moratorium

As San Jose presents draft rules for data centers, many still call for a moratorium

News ClipThe Mercury News·San Jose, Santa Clara County, CA·10/16/2026

San Jose unveiled draft regulations for data centers addressing power use, water consumption, noise, lighting and environmental impacts. Residents called for an immediate moratorium, while city officials are pursuing targeted rules and preparing the standards for Planning Commission and City Council votes.

oppositionenvironmentalgovernmentelectricitywatermoratorium
Gov: City of San Jose, San Jose Planning Commission, San Jose City Council, Oak Grove School District Board

San Jose presented draft data center standards amid strong resident opposition and calls for an immediate moratorium. The proposed rules would impose stricter environmental and design requirements on facilities using at least 20 megawatts, including a ban on drinking water for open cooling systems, a requirement for carbon-neutral power, limits on generator testing, noise controls and annual reporting of resource use.

The city has 13 data center applications in the pipeline and an estimated 25 to 40 operating facilities. Residents raised concerns about cumulative environmental impacts, electricity rates, noise and the concentration of projects in South San Jose, while union workers and business representatives supported predictable standards and labor and environmental safeguards. Mayor Matt Mahan said San Jose should regulate the industry rather than ban technological development. City staff plan to present a final draft to the Planning Commission on Nov. 18, followed by City Council votes scheduled for Dec. 8 and Dec. 15.