San Jose may pause data center approvals pending new environmental rules

San Jose officials are considering a temporary pause on new data center project approvals while they finalize updated development standards, San José Spotlight reported. The proposed halt aims to ensure projects comply with new environmental and community benefit requirements expected to be adopted in December.

Mayor Matt Mahan and councilmembers Pamela Campos, David Cohen, Peter Ortiz, and Domingo Candelas announced the proposal on Thursday, which would stop land use approvals for data centers and other large energy-use projects until the new rules are implemented, CBS News Bay Area reported.

The new standards would require data centers to use 100% carbon-neutral electricity, ban open-loop cooling systems, and mandate the cleanest backup generators. They would also impose ongoing noise, water, and energy restrictions, along with monitoring requirements. Additionally, workforce standards including prevailing wage and skilled labor requirements are included.

Officials emphasized the pause is necessary to prevent projects from being approved before the stronger regulations take effect. They noted extensive community outreach informed the standards, which are scheduled for a council vote on December 8. An urgency ordinance is also proposed to make the standards effective immediately after approval.

Currently, 11 data center applications are under review in San Jose, the largest city in Silicon Valley. The proposed new rules come amid a national backlash over data centers. CBS News exit polls taken during the November midterm elections showed big majorities nationally, including Democrats, Republicans and independents, opposed new data center projects.