Hayward approved a massive data center. Then it rewrote the rules
Hayward approved a large STACK Infrastructure data center, leading to community concerns over its environmental and resource demands. In response, the city council established new land use rules for data centers, requiring more transparency and oversight for large projects. Other Bay Area cities like Oakley and Richmond are considering or enacting moratoriums on data center development.
Hayward, California, approved a massive 310,000-square-foot hyperscale data center by STACK Infrastructure in May 2025, a decision made by the Planning Commission without immediate City Council involvement. The facility's electrical capacity is comparable to powering 76,000 homes, sparking significant community concerns over environmental impacts, particularly water usage in drought-prone California. Resident Stephanie VanGilder voiced strong opposition to the California Energy Commission, citing the irresponsible allocation of scarce water resources.
Following the approval and growing community pushback, the Hayward City Council established a new land use category for large data centers less than a year later. This reform mandates greater transparency and oversight, requiring public hearings before the city council for data center proposals exceeding 50 MW. This move aimed to address oversight gaps, as data centers previously fell under "office" use and could be administratively approved.
The STACK project itself, which includes 28 diesel backup generators totaling 76.6 MW, received exceptions for height and parking. STACK also agreed to a $2 million community benefits package, which Councilmember George Syrop criticized as insufficient, arguing the city could have negotiated for more given the facility's substantial resource demands. While the data center is projected to generate $8.3 to $10.5 million annually in tax revenue for Hayward, critics question if these benefits will outweigh the environmental and resource costs to residents. Other Bay Area cities like Oakley have enacted moratoriums, while Richmond is developing one, highlighting a regional trend of cities adapting regulations to manage data center development.