Santa Clara, California’s Capital of Data Centers, Weighs More Regulations
Santa Clara City Council directed staff to develop stronger air pollution and water-use regulations for new data centers. A council member also proposed a temporary moratorium as officials weigh the industry’s financial benefits against concerns about pollution, water consumption and strained electricity infrastructure.
Santa Clara City Council members directed city staff to prioritize tighter air pollution and water-use standards for future data centers and to return with proposals ahead of a broader review of city regulations. Councilmember Karen Hardy proposed a temporary moratorium, while Councilmember Suds Jain called for stricter water limits and Councilmember Kevin Park questioned whether residents should bear the cost of infrastructure expansion.
Santa Clara has nearly 60 data centers, which account for about 54% of the city’s electricity use and nearly 10% of its general fund revenue. Silicon Valley Power stopped accepting new data center power-hookup applications in 2023 because its capacity was exhausted, with a $450 million infrastructure upgrade not expected to be complete until 2030. The council’s proposed regulatory changes come as the city balances industry revenue against concerns about water use, air pollution, artificial intelligence and grid strain.