San Jose officials are moving forward with proposed development standards for data centers, even as residents and environmental advocates gathered at City Hall on Thursday night to demand an immediate pause on all new projects.
During the community meeting, high-ranking city staff presented new rules and requirements for future data centers. These include mandatory recycled water use for cooling or the implementation of low-water systems, aesthetic design enhancements, and sound dampeners. The proposals also suggest limiting backup generator runtime for testing and maintenance to 25 hours per year, a reduction from the state's 50-hour annual rule, and imposing developer fees intended to support affordable housing. Additionally, data centers would need to use completely carbon-neutral electricity, regularly report their water and electricity usage to the city, and undergo third-party verification every five years. The city's proposed standards also could require sewer discharge and noise monitoring and expand the radius for mailed notification cards about possible data center projects to 1,500 feet, up from the current 1,000 feet.
Business groups and union laborers who construct data centers commended the city for its proposals.
However, community groups and residents from across San Jose urged a halt to all data center approvals and applications. They argue the proposed standards are insufficient to protect the community from risks such as air and water pollution, localized temperature increases, and constant noise.
Kylie Clark, policy director at the Silicon Valley Council of Nonprofits, voiced concerns during a rally prior to the meeting. Clark questioned the urgency, stating, "What is the rush?" She emphasized that these are irreversible decisions that will define the city for generations, urging officials to take time to understand impacts and ensure they are done correctly.
Mayor Matt Mahan, who attended part of the Thursday evening meeting, has previously stated that San Jose should set an example in how such significant investments benefit municipalities, likening a complete ban to ignoring the issue. He pledged that the city would implement "the highest, strictest standards" to address resident concerns. Deputy City Manager Manuel Pineda, who oversees the city’s energy and environmental services work, confirmed that despite public calls, the City Council has not instructed staff to pursue a moratorium.
The city is proceeding with a public input process, which began in August, to refine the new rules around data center development, monitoring, and requirements for ensuring such projects help support affordable housing fees. This approach follows a history where San Jose previously established dedicated staffing to attract data centers, inked a power reliability agreement with PG&E, and offered "concierge-style support" to developers. Pineda noted that the city is "still listening" as it continues to develop the standards to make them as effective as possible.
During the meeting and at rallies outside City Hall, residents expressed outright distrust of city leadership and staff, feeling the public engagement process was rushed and resulted in proposed standards many characterized as weak or a giveaway to AI data center developers.
Some residents called for a moratorium due to the city's limited regulatory scope, which they believe cannot encompass wider concerns. These include the unknown cumulative impacts of having too many data centers in one area, the risk of groundwater pollution from harsh chemicals used in some cooling processes, and even potential security risks, citing recent international incidents.
Longtime resident Ted Smith drew parallels to the 1980s, when unrestrained growth in the semiconductor industry led to widespread pollution in the county due to mismanaged solvents. Smith warned against repeating past mistakes, noting he sees many loopholes in the proposed standards.
Another resident, Shaf Khan, shared concerns about living in an area with three existing data centers and wanting to understand their long-term effects, especially on young and developing children and expecting parents, before more are built.
Bob Staedler, a longtime San Jose land use consultant, criticized the city's approach as being too friendly with developers. He suggested the city has tools at its disposal to limit data center concentration, similar to its recent moratorium on all new smoke shops through late 2027 due to concerns about overconcentration. Staedler pointed out that the city appears to focus more on issues like weed shops, alcohol, and smoke shops than on the significant issues of cumulative concentration from data centers.
A key concern from residents is that while the city's standards would regulate how often diesel or natural gas backup generators can be run for testing and maintenance, they would not apply during actual power outages. Ellina Yin, who closely tracks data center development in the city, highlighted the risk of all generators activating during heat waves and power failures.
