Santa Clara Continues to Examine How It Handles Data Centers
The Santa Clara City Council again postponed deciding whether to prohibit new data center construction while reviewing the pros and cons of a moratorium. City Manager Jovan Grogan said the city lacks power capacity for new data centers and has effectively halted approvals since 2023. The council also unanimously agreed to discuss disclosure of nondisclosure agreements, with data center water use scheduled for further consideration.
The Santa Clara City Council deferred action on a proposed moratorium on new data centers, choosing to note and file a report outlining the policy’s advantages and disadvantages. Council Member Karen Hardy has advocated for the discussion, while other council members questioned whether halting development would be appropriate. City Manager Jovan Grogan said Santa Clara cannot provide power to additional data centers and has effectively stopped approving them since 2023.
The council also agreed unanimously to examine the city’s use of nondisclosure agreements after concerns that data center-related dealings could lack transparency. Council Member Kevin Park broadened the proposal to cover all city agreements, not just those involving data centers. Mayor Lisa Gillmor and Council Member Kelly Cox defended Santa Clara’s data center industry and its jobs and utility benefits, while the council is expected to revisit the moratorium, data center water use and NDA issues at a future meeting.