San José Moves Toward Environmental Rules for Future Data Centers
San José is moving toward a uniform set of environmental and community-engagement standards for future data centers and other large energy-use projects.
On June 10, 2026, the city’s Rules and Open Government Committee recommended that the City Manager establish standards and best practices for data-center projects. The work could give the city a more consistent way to evaluate facilities that may place significant demands on energy, water and supporting infrastructure.
The recommendation is not a final set of regulations. The City of San José says the standards project remains under development, with updates to be published as they become available.
What the proposed standards would address
The framework is expected to examine how proposed data centers would consume energy and where that energy would come from. That could make energy demand and energy sourcing part of a more uniform review for future projects in San José.
Water use is another central topic. The city’s listed areas of focus include recycled water, closed-loop systems and other efficiency measures. The proposal does not require all future data centers to use recycled water, but it identifies water conservation and alternative systems as issues for the city’s standards work.
The proposed standards also cover air quality and backup-power generators. Generators can be part of a facility’s operations during power interruptions, making their potential environmental effects relevant to the city’s planning review.
Other subjects include greenhouse-gas emissions, noise and water-quality protections. Together, those issues would address both the day-to-day operation of large facilities and the equipment intended to keep them operating when the electric supply is disrupted.
Community notice would be part of the framework
The city is also developing a consistent process for notifying and engaging the community about new data-center projects. San José identifies Community Policy 6-30 as the basis for its outreach procedures.
A standardized process could make it easier for residents to learn when a project is proposed and how to participate in the city’s review. The committee’s action, however, does not itself establish a citywide ban or moratorium. It also does not mean that a specific data-center project has been rejected or blocked.
State legislation is part of the recommendation
Alongside the local standards work, the committee recommended supporting statewide legislation related to cleaner infrastructure, recycled-water systems, cleaner energy and transmission infrastructure.
That recommendation connects San José’s local planning effort to broader questions facing California communities as they consider facilities with substantial energy needs. The city’s proposed approach would consider environmental effects and infrastructure demands while also setting expectations for public notification and engagement.
Next steps remain under development
The practical effect of the June 10 action will depend on the standards eventually developed by the City Manager and city staff. Those standards could shape how San José evaluates future data centers’ energy and water demands, backup generators, emissions, noise, water-quality protections and community-notification obligations.
The city has not announced a final adoption date or a complete schedule of upcoming community meetings for the data-center standards. The work is proceeding during a broader summer 2026 review of San José’s planning policies. A related Planning Commission recommendation is scheduled for City Council consideration on Aug. 18, 2026, although that date concerns the broader General Plan review rather than a stated deadline for the data-center standards.
For now, the next known step is continued development of the proposed standards and engagement procedures. Any future framework will determine how the city translates the committee’s recommendation into a consistent process for reviewing large energy-use projects.
Sources
- Data Center and other Large Energy-Use Projects, City of San José Planning Division
- General Plan 4-Year Review, City of San José Planning Division
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