Contact: Afshan Hamid and CM
Report: May 2025 Report and October 2026 report pg. 161
The need for data center developments is accelerating alongside the growing demand for artificial intelligence. While these facilities can bring in significant revenue, they also come with increased public scrutiny due to environmental concerns and community impact.
In Santa Clara, residents have raised concerns about the growing number of data centers and their potential impacts on the community. Questions about electricity demand, building size, noise and proximity to homes have brought increased attention to how these facilities are regulated.
In May 2025, City staff presented a report during a joint City Council and Planning Commission study session that covered key concerns and misconceptions:
- Economic benefits
- Electricity and water needs
- Existing regulations for building design, lighting and noise
- Standards used by other agencies
The City has continued reviewing its data center regulations. In August 2026, staff formed a working group to identify improvements. At an October City Council meeting, staff proposed stronger standards for water use, building design, facility locations and community benefits. The Council confirmed these priorities and directed staff to further examine the long-term impacts of data centers, with the review expected to conclude by the end of 2027.
Ongoing efforts are led by Community Development Director Afshan Hamid.
This is just one of several examples of data center discussions featured on LINK. To quickly ramp up on this topic, check out this LINK article.
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