San Francisco and Oakland Pass 45-Day Moratoriums on New Data Centers

SF and Oakland became the first Bay Area cities to pass 45-day moratoriums on new data centers Tuesday, giving officials time to study their environmental impacts while considering longer-term restrictions on the rapidly expanding industry.

San Francisco’s Board of Supervisors voted unanimously Tuesday to halt new data center development for 45 days, as well as the expansion of existing facilities, which took effect immediately, as Mission Local reports. The vote followed an extensive public comment at the Board of Supervisors’ Land Use and Transportation Committee meeting Monday in which dozens of community members voiced support for the measure.

The moratorium will give the Planning Department time to examine how the facilities could affect water use, energy demand, air quality, and land use in surrounding communities. It also gives officials time to develop a clearer definition of what constitutes a data center while they consider longer-term regulations.

As SFist reported previously, District 10 Supervisor Shamann Walton introduced the measure last month while raising concerns about the environmental effects of data centers and the lack of community input surrounding some projects in his district. District 10 has historically carried a disproportionate share of the city’s industrial pollution, and existing data centers are concentrated there.

The proposal was co-sponsored by Supervisors Connie Chan, Jackie Fielder, and Cheyenne Chen. At the end of the 45-day period, the Planning Commission is expected to hold a hearing on the findings. 

SF’s moratorium puts an immediate pause on both new data center projects and permit applications to expand existing facilities. That includes the expansion of NOVVA’s 7.6-acre data center at 400 Paul Avenue in Bayview, which was slated to increase its power capacity from 9 megawatts to 36 megawatts by 2028, according to Mission Local. 

However, the moratorium won’t necessarily stop the momentum behind data center development. For example, content creator Shot of Culture, who has been providing detailed, on-the-ground information about data center projects in District 10, recently noted that PG&E appeared to be upgrading its power infrastructure near NOVVA’s facility on Paul Avenue, which won't be affected by the moratorium.

Permits have also been filed for a 160,000-square-foot data center at 1215 Michigan Street in the Dogpatch, and activists have also been fighting two proposed data centers in District 6, including a facility in SoMa that Amazon has reportedly been developing.

The moratorium could ultimately last much longer than 45 days. Mission Local reports that if the city determines that data centers are having significant environmental impacts, the temporary measure can reportedly be extended for up to 22 months while officials consider permanent controls, restrictions, or a potential citywide ban.

As KTVU reports, Oakland’s City Council also voted unanimously Tuesday night for its own 45-day moratorium, which was sponsored by Councilmember Carroll Fife. The Oakland measure similarly pauses new approvals while city officials study the potential effects of data centers on water supplies, the electrical grid, air quality, and other infrastructure.

The vote came after protesters gathered outside City Hall to call for a halt to data center development, while residents and activists offered both support and opposition during the council meeting. Water consumption was a major concern, particularly because of the amount of water some cooling systems can require.

Dr. Elizabeth Dougherty, who spoke before the council, raised concerns about Oakland’s dependence on water from the Mokelumne River and the potential effects of increased demand on ecosystems upstream in the Sierra Nevada, according to KTVU.

Fife has also reportedly criticized the use of non-disclosure agreements by developers, arguing that they can prevent city officials and residents from getting information about proposed facilities. That issue has received increased attention as Behring Companies moves forward with plans to convert the ground floor of a building near 20th and Franklin streets into a data center, while using the upper floors for artificial intelligence research, as previously reported.

Mayor Barbara Lee said the moratorium will give Oakland residents an opportunity to weigh in on how the city handles future projects.

“This is a moment to have the public weigh in,” Lee said, per KTVU.

Fife has scheduled a community meeting for October 24 at 10 am at Beth Eden Baptist Church in West Oakland to discuss the future of data centers in Oakland. The city will use the 45-day pause to consider potential policies and development standards for future facilities.

Other Bay Area communities, including Pittsburg, Oakley, and Gilroy, have also faced opposition to data center projects. Governor Gavin Newsom signed a series of bills last month aimed at regulating the development of the facilities in California.

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