SF Supervisor Plans Moratorium on New Data Centers, With Permanent Ban to Follow

Walton plans to introduce a 45-day moratorium on new data center construction as the first step toward a permanent citywide ban, with his district already home to two active facilities, one of which is planning a large expansion.

District 10 Supervisor Shamann Walton is proposing a temporary halt to allow the city time to properly examine data centers' environmental effects before allowing additional facilities to be built, as the Chronicle reports. Walton, who's reportedly been working on the proposal for months, aims to eventually propose legislation banning new facilities permanently citywide.

According to Mission Local, if approved by the Board of Supervisors, the initial 45-day moratorium could be extended for up to 22 months and 15 days if the San Francisco Planning Commission finds that existing data centers pose a threat to residents.

District 10, which includes Bayview-Hunters Point, Visitacion Valley, Portola, Dogpatch, and other southeastern neighborhoods, has seen an increase in data center activity over the past decade. The 7.5-acre NOVVA facility at 400 Paul Avenue in the Bayview was reportedly approved by the Planning Commission in 2016 and brought its first 9 megawatts of power online this summer.

NOVVA is expected to eventually reach 36 megawatts and plans to continue increasing its capacity through 2028. Mission Local reports that if Walton’s moratorium passes, it could impede NOVVA’s expansion.

Across the street from NOVVA at 200 Paul Avenue, Digital Realty operates another data center, while Global Stack has proposed a 10-megawatt facility at the Cow Palace in Daly City, which borders District 10, which does not yet have a construction date.

The Dogpatch neighborhood has also attracted major technology companies and other large projects in recent years, including Y Combinator, whose CEO Garry Tan has advocated for expanding AI data center infrastructure.

Walton told Mission Local residents in Bayview have raised concerns about the potential effects of additional data centers on the neighborhood, which has already experienced decades of disproportionate exposure to pollution from heavy truck traffic, the former PG&E power plant, which closed in 2006, and contamination associated with the former Hunters Point Naval Shipyard.

“I do expect there are folks in tech who are not concerned about the environmental impact data centers will have in my community,” Walton said, speaking to Mission Local.

Data centers can reportedly require substantial amounts of electricity and water, while their backup generators can produce additional air pollution. They can also generate heat and noise, and their power demands can put additional strain on local electrical grids, with small Bay Area facilities using as much electricity as tens of thousands of homes.

“We need to know what these impacts are,” Walton said. “Until we know what that is, it needs to stop.”

Walton's proposal comes as other jurisdictions have begun imposing restrictions on data centers, including eight California counties that have adopted moratoriums or other limits, according to Mission Local.

The proposal also has support from the top three candidates running to replace Walton, whose term ends in January 2027, as Mission Local reported separately. Theo Ellington, whose political committee recently received a $500,000 check from crypto billionaire Chris Larsen, said the city should pause new data centers until it establishes environmental protections, community input requirements, power-upgrade cost requirements for developers, ratepayer and anti-displacement protections, and public disclosure of water and energy use.

JR Eppler said he supports a District 10 moratorium while the city develops standards addressing cumulative impacts, including effects on the electrical grid, water supply, backup diesel generators, air quality, noise, and neighborhood health.

“Counting megawatts is not enough; several smaller facilities can impose the same burden as one large project,” Eppler said, speaking to Mission Local.

Dion-Jay “DJ” Brookter said he would support both a comprehensive moratorium and a permanent ban, regardless of the size of a proposed facility.

“We have limited industrial land that should be used to create quality jobs, build community wealth, and expand opportunity — not facilitate an extractive use that places new burdens on our communities while primarily benefiting investors and technology companies,” Brookter told Mission Local.

The Chronicle reports that Walton plans to hold a news conference Monday ahead of Tuesday's Board of Supervisors meeting to discuss the legislation.

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