NEWS RELEASE: City of San José Shares Most Comprehensive Set of Standards for Data Centers and Large Energy Projects – Community Meeting

FOR IMMEDIATE RELEASE

CONTACT
Carolina Camarena, Director of Communications
408-535-7777; [email protected]

Tasha Dean, Chief Communications Officer, Office of Mayor Matt Mahan
510-612-6488; [email protected]

City of San José Shares Most Comprehensive Set of Standards for Data Centers and Large Energy Projects
Proposed standards were developed through a collaborative community process, residents invited to provide feedback on full standards

SAN JOSE, Calif. (October 9, 2026) - The City of San José will host a community meeting on the proposed Uniform Standards for data centers and large energy projects on Thursday, October 15, from 6:00 to 8:00 p.m. at the San José City Hall Council Chambers, located at 200 E. Santa Clara St. City staff will present the proposed draft standards and provide details on each requirement and guideline. Community members are encouraged to participate and provide feedback in person or online.

"Community feedback is not just a part of this process - it is essential. We rely on residents, businesses, and stakeholders to help shape solutions that reflect our shared priorities," said City Manager Jennifer Maguire. "Establishing responsible standards for data centers and other energy-intensive projects means taking a comprehensive look at both their opportunities and their impacts on San José."

The draft standards come as California moves to strengthen oversight of artificial intelligence and the data centers that power it. In September, Governor Gavin Newsom signed seven bills to protect ratepayers from the cost of electrical grid upgrades, increase transparency around water use and limit environmental review exemptions. San José's proposed standards would go a step further, adding local requirements for water conservation, clean energy, air quality, and community benefits.

"As the capital of Silicon Valley, San José is leading the nation in regulating the development of infrastructure that powers AI, the internet and our increasingly digital world," said Mayor Matt Mahan. "We're proposing some of the strictest standards in the country while ensuring our residents share in the benefits of the innovation happening in our own backyard."

Between August and October 2026, City staff held dozens of community meetings with hundreds of residents, neighborhood associations, environmental and labor groups, the development community, partner agencies, and youth. This included a community listening session that drew 200 in-person attendees and 130 online participants. Staff shared draft standards early and refined them between sessions based on what they heard. As a direct result of that feedback, staff strengthened key provisions, including the 100% carbon-neutral energy requirement, limits on potable water use and backup generators, noise and sewer discharge monitoring, architectural standards, and expanded public notification and transparency in the City's project review.

The proposed standards presentation is posted on the City's Uniform Standards webpage. Currently, they are a draft and subject to change per community feedback; they include:

• Large-Energy definitions: New definitions in the Municipal Code for Large Load Data Centers and Large Load Research and Development Facilities, covering facilities with a power demand of 20 megawatts or greater.
• Architecture and design: Full cutoff and fully shielded exterior lighting, structural noise reduction measures for exterior equipment, and backup generators sited as far as feasible from sensitive receptors.
• Appeals process: For data center and research and development projects over 20 megawatts, both land-use and CEQA appeals would be heard by the City Council.
• Labor standards: Compliance with state prevailing wage and skilled and trained workforce requirements, and City encouragement of project labor agreements, community benefits agreements, local hiring and apprenticeship support.
• Water use: Cooling systems must use 100% recycled water from the South Bay Water Recycling system or low-water cooling technology such as closed-loop or air-cooled systems, with measurable limits on annual water loss. Open-loop cooling that uses potable water would be prohibited.
• Clean energy: Projects must use 100% carbon-neutral electricity, which enrollment in San José Clean Energy satisfies. Projects not enrolled must submit annual compliance reports.
• Backup generators and air quality: EPA Tier 4 generators; testing and maintenance limited to 25 hours per year, weekdays between 8 a.m. and 5 p.m.; operation only during power outages; and developer certification of compliance before a Certificate of Occupancy is issued.
• Sewer discharge and noise monitoring: Annual sanitary sewer discharge monitoring reports and annual noise monitoring near residential uses, with additional noise reduction measures required if thresholds are exceeded.
• Energy and water audits: Annual water and energy use and third-party verification of actual energy and water use compared to levels assumed in the project's environmental clearance, with an audit and required improvements if use exceeds those levels.
• Community engagement: An increased public notification radius of 1,500 feet for large energy projects.
• Community benefit and reliability fees: An anticipated Commercial Linkage Fee for affordable housing of $4 to $5 per square foot for data centers, and an Energy Reliability Fee estimated at approximately $50,000 per megawatt to support distributed energy resources. Both are subject to ongoing study.
• Use tax attribution, additional community benefits and enforcement: Work with projects to attribute sales and use tax on equipment purchases to San José, options for additional voluntary community benefits, and City authority to inspect, monitor and enforce compliance.

The City's work on the Uniform Standards follows a June 10, 2026 recommendation by the Rules and Open Government Committee first proposed by Mayor Matt Mahan and Councilmembers David Cohen, Peter Ortiz, and Domingo Candelas directing the City Manager to establish uniform standards and best practices for data center projects. The standards are intended to mitigate potential impacts related to energy consumption and sourcing, water use, air quality, backup power generators, and other environmental factors, and to outline a clear and consistent process for community notification and engagement.

Following the October 15 meeting, staff will present the final proposed "Large Energy Projects Uniform Development Standards Council Policy" and accompanying Ordinances to the Planning Commission on November 18. Then, the Council Policy and Ordinances are tentatively scheduled for City Council presentation and first reading on December 8, with the second reading on December 15. The Council Policy and Ordinances will apply to all planning applications still under review when the ordinance takes effect, 30 days after the second reading.

Community Meeting Details
When: October 15, 6:00 - 8:00 p.m.
Where (in person): San José City Hall, Council Chambers (overflow seating available in the Rotunda), 200 E. Santa Clara St., San José, 95113. The City will provide live translation via Wordly.
Where (Zoom):https://sanjoseca.zoom.us/j/94944524154

For more information about the proposed Uniform Standards, visit the Data Centers and Large Energy Project Uniform Standards webpage. Free translation of the presentation is available. Email [email protected].

About the City of San José
With almost 1 million residents, San José is one of the most diverse large cities in the United States and is Northern California's largest city and the 13th largest city in the nation. San José's transformation into a global innovation center has resulted in one of the largest concentrations of technology companies and expertise in the world.

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