‘Full-on Backlash’ Against Data Centers Occurring as San José Courts Them
San José is actively pursuing data center development, leading to strong local opposition due to concerns about electricity, water consumption, and environmental impacts. Residents are calling for a moratorium, while city officials plan to introduce new regulations to address community concerns by the end of the year.
San José, California, is experiencing a "full-on backlash" from residents as its leaders actively court new data center developments. Despite neighboring Santa Clara already being a data center hub, and cities like Oakley enacting moratoriums, San José Mayor Matt Mahan has pursued an aggressive strategy to attract data centers, announcing a deal with PG&E to guarantee power for major projects and offering "concierge-style support" for developers.
The city's push has drawn fierce opposition from community members, including South San José resident Ken Thompson, who lives near a proposed Prologis data center on Silver Creek Valley Road. Residents are concerned about the massive electricity and water demands, potential diesel emissions from backup generators, and broader environmental and public health impacts, with some advocating for a moratorium on new data center applications. The California Public Utilities Commission has highlighted the significant power demands, noting a proposed Google R&D facility's 250 MW consumption would exceed Marin County's average demand. Microsoft is also building a 99 MW data center, and Prologis is proposing a 496 MW facility for data centers and research.
In response to community outcry, Mayor Mahan acknowledged the need for regulation, stating the city plans to present the City Council with new, stricter standards for data center proposals by year-end, covering labor, environmental protection, rate-payer protection, and aesthetics. This approach aims to regulate "Big Tech" rather than reject development entirely, a stance supported by industry trade groups like the Silicon Valley Leadership Group and Data Center Coalition, which emphasize the economic benefits and the industry's commitment to responsible resource use and community engagement. Meanwhile, Governor Gavin Newsom recently vetoed a bill requiring water use disclosure by data center developers but has other related bills on his desk.