South Bay Data Centers Raise Environmental Concerns Over Water and Power

South Bay Data Centers Raise Environmental Concerns Over Water and Power

News ClipSFGATE·San Jose, Santa Clara County, CA·5/18/2026

Santa Clara County faces environmental challenges, particularly regarding water and electricity usage, due to a surge in data center development. Researchers highlight a lack of transparency and comprehensive environmental review requirements for these facilities. Residents in San Jose are pushing for more clarity and stronger protections as state lawmakers consider new oversight measures.

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Gov: Santa Clara County, San Jose, Santa Clara, State lawmakers, City Manager's Office

Santa Clara County, home to a dense concentration of data centers, is grappling with significant environmental concerns, particularly regarding water and electricity usage, according to a new report. Researchers from Santa Clara University and policy nonprofit Next 10 found that current environmental review requirements for data centers in California have numerous blind spots, making it difficult to assess the true impact on the state's water system amid a rapid, AI-fueled buildout.

The report highlighted that while many environmental reviews include projected water use, actual consumption data is rarely made public by data center operators. This lack of transparency, coupled with withheld information about cooling systems and water sources (potable vs. recycled), hinders effective planning. Iris Stewart-Frey, an environmental science professor at Santa Clara University, emphasized the increased pressure on water planners to understand the implications of accelerated data center construction.

Despite Silicon Valley having a relatively stable, albeit imported, water supply compared to rural areas where data centers are increasingly located, local reporting still reveals gaps in environmental information. San Jose's plans for data center expansion, supported by new transmission lines, have met with pushback from residents. Ellina Yin, an organizer of local opposition, demanded transparency, public engagement, cumulative environmental assessments, and enforceable protections before further approvals. Santa Clara officials have already had to turn away new data centers due to grid capacity limits.

State lawmakers are currently considering legislation to stiffen oversight and strengthen reporting requirements for water usage. However, Ahmad Thomas, CEO of the Silicon Valley Leadership Group, warned that over-regulation could stifle innovation in the burgeoning AI industry. Thomas, who sits on San Jose Spotlight's advisory board, argued against a "one-size-fits-all approach" that might constrain innovation without providing policymakers with the necessary context for water resource management.