As the City develops its standards to guide how data centers and other large energy users fit into the city's future, the San Jose Silicon Valley Chamber of Commerce is bringing together developers, technology companies, utilities, construction firms and the broader business community to share information, facilitate dialogue and ensure business perspectives are represented.
Our goal is to support clear, consistent and predictable standards that encourage responsible investment, strengthen San Jose's competitiveness, address energy and environmental considerations, and deliver lasting economic benefits for our community.
Join us in shaping San Jose's digital future.
Data centers are an essential part of our everyday lives
Electronic medical records, telehealth visits, medical imaging, lab results, and pharmacy systems at hospitals and clinics.
Drug discovery, cancer and genomic research, clinical trial data, disease tracking, and the large-scale simulations that university and biotech labs use to develop new treatments and cures.
911 dispatch, emergency alerts, wildfire and earthquake warning systems, and first-responder communications.
Every card swipe, paycheck deposit, mobile transfer, and small-business point-of-sale transaction.
Online classrooms, homework platforms, and student records from kindergarten through community college and university.
Video meetings, remote work tools, online retail, logistics tracking, security, and the cloud software small businesses run on.
Permitting, benefits enrollment, tax filing, and transit trip planning.
Semiconductor design, climate and weather modeling, and clean-energy grid management, much of it invented here in Silicon Valley.
Streaming, gaming, photo storage, navigation, and staying connected with family.
How data centers are regulated
Data centers are among the most regulated facilities in San Jose and the nation. Establishing responsible data center policy can ensure San Jose maintains its position at the forefront of the digital economy while ensuring appropriate safeguards are in place to protect our environment, our resources and our neighborhoods.
DATA CENTERS IN SAN JOSE: Developing Nation-Leading Standards
*Indicates elements proposed as part of San Jose's evolving draft standards
Demand is rising fast — and it’s being planned with clean energy and paid for.
100% carbon-neutral electricity*, with costs paid up front (SB 886 / AB 2383)
Diesel backup generators must be EPA Tier 4, with testing and maintenance limited to 25 hours per year, and run only during power outages, never for demand response or other non-emergency purposes*
Operators are required to track and report energy and water use annually with third-party verification every five years*
New large load systems can push energy bills down.
PG&E estimates that every new gigawatt of data center demand could reduce the average household electricity bill by 1–2% over time. (PG&E, Jan 2026)
San Jose is keeping drinking water out of cooling.
Large energy projects must use either 100% recycled water or low-water cooling technology, such as closed-loop or air-cooled systems. Open-loop cooling systems using potable water are prohibited*
Nationally, data centers use about 0.2 percent of daily US water. The Manhattan Institute
Data centers will bring millions per year for city services, while protecting neighbors.
A 50- to 99-megawatt facility, once fully operational, should generate between $3 and $6 million annually for public safety (police officers and firefighters), parks, libraries, roads, and neighborhood services. (A message from Mayor Matt Mahan, July 2026)Â
Neighbor protections include sound barriers and lighting shields, and limits on backup generator testing* City of San José, 10.9.26Â
Data centers will bring additional community benefits for affordable housing and energy reliability
New fees for data centers for energy reliability ($50,000 per MW) and affordable housing ($4-5 per s.f.)*
Labor standards that incorporate prevailing wage and skilled and trained workforce requirements: City will encourage and report annually voluntary commitments to recently added Article 14.7 (Sections 945 through 945.9) of the California Public Utilities Code*
Water Use Comparison by Category: How We Use Water
By comparison, data centers consume one-tenth of the water used for residential outdoor use (gardens and landscaping), and one-quarter of water associated with household leaks. Onsite water use is just 8 percent of total data center water use.
COMMUNITY PROCESS TIMELINE
May 2026: San Jose Mayor and City Council direct staff to explore developing standards
June-Sept 2026: City hosts community listening sessions, fact gathering
Sept 2026: California passes 9 bills governing data center requirements
Oct 9, 2026: San Jose draft proposed standards released
Oct 13, 2026: San Jose Silicon Valley Chamber hosts multi-agency forum to hear perspectives and progress updates from City, PG&E, Data Center Coalition and South Bay Labor Council
Watch the video   Read the news release
Oct 15, 2026: San Jose hosts community meeting to present draft proposed standards, hear from public
Nov 18, 2026: Updated standards presented to Planning Commission
Dec 8, 2026: City Council to review proposed standards
RESOURCES
Email the San Jose Planning Commission
Urge consideration of uniform draft standards for data centers and large energy users (being considered November 18)
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