As San Jose presents draft rules for data centers, many still call for a moratorium on the sites

As San Jose presents draft rules for data centers, many still call for a moratorium on the sites

News ClipEast Bay Times·San Jose, Santa Clara County, CA·10/16/2026

San Jose released draft data center standards covering power, water, noise, environmental safeguards and community notification, but residents demanded an immediate moratorium on new facilities. The proposed rules are scheduled for Planning Commission and City Council consideration in November and December, while the city continues weighing data centers' tax revenue against resource and neighborhood impacts.

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Gov: City of San Jose, San Jose City Council, San Jose Planning Commission, Oak Grove School District Board, San Jose Silicon Valley Chamber of Commerce, PG&E

San Jose unveiled draft standards intended to regulate the city's growing data center sector without imposing an outright ban. The proposed rules would apply strict environmental and design requirements to facilities using at least 20 megawatts, including a prohibition on drinking water for open cooling systems, carbon-neutral power requirements, limits on backup-generator testing, noise controls and annual reporting on energy, water and sewer use.

Dozens of residents called for a moratorium, citing environmental, public-health, electricity, water and quality-of-life concerns, while union representatives and business leaders supported regulated development with labor and environmental safeguards. The city has 13 applications pending and an estimated 25 to 40 operating data centers, and officials are also considering developer fees for affordable housing and grid improvements. Staff are expected to present a final proposal to the Planning Commission on Nov. 18, followed by City Council votes scheduled for Dec. 8 and Dec. 15.