California city weighs data center ban over fears they could send power bills soaring

California city weighs data center ban over fears they could send power bills soaring

News ClipThe Independent·San Diego County, CA·10/27/2026

San Diego officials are considering a temporary moratorium on new data centers because of concerns about electricity demand, utility bills, water use, housing and land availability. The proposal follows plans being explored by Manchester Financial Group for a potential 400-megawatt facility at the federally owned NAVWAR site near Old Town, though a city ban may not apply there.

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Gov: San Diego City Council, City of San Diego, Mayor of San Diego, U.S. Navy, Naval Information Warfare Systems Command

The San Diego City Council is scheduled to consider a temporary ban on new data centers after Mayor Todd Gloria called for stricter regulation of the industry. If approved, the moratorium would halt new construction within city limits for up to 180 days while officials develop rules and study impacts on electricity, water supplies, housing, land use and nearby communities.

The debate was prompted in part by Manchester Financial Group’s exploration of a potential 400-megawatt data center at the Navy-owned NAVWAR property near Old Town and downtown. The facility could use as much electricity as more than 320,000 homes, according to Voice of San Diego. City leaders, including Councilman Sean Elo-Rivera and Council President Pro Tem Kent Lee, urged prioritizing housing and community protections, while Manchester Financial Group President and CEO Ted Eldredge said no final decision had been made and that the company remained focused on redeveloping the site with the Navy and other stakeholders.