Data Centers
Data center development proposals, permits, moratoriums, zoning, and community impact
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Meeting history
- City Council95%
Council Member Juarez introduced a 9.5 % City Light rate‑increase ordinance that, among other provisions, creates a new customer class for data centers requiring them to pay their own electricity. The ordinance was adopted unanimously (9‑0) at 129:10, with council members emphasizing affordability and the city’s green energy strategy. City Light will present detailed generation, transmission, distribution plans and affordability data over the next six months to address the new data‑center mandate.
The committee reviewed and unanimously passed Council Bill 121231, an ordinance that creates new retail rate schedules and a dedicated customer class for data centers whose electricity demand constitutes a large load. The bill also modifies service charges and eligibility for residential assistance, and it was carried 5‑0 at the committee. The ordinance will be forwarded to the full council for a July 21 vote, where it is expected to be adopted and then implemented by City Light.
During the July 15 meeting, committee members and the public debated a moratorium on new hyperscale AI data‑center construction (Inf 2922). Speakers—including residents Rebecca Young, Rowan Hinkle‑Johnson, Audrey Wong‑Guesna and Brian Dang—called for strict disclosure of water use, renewable‑energy requirements, and even a ban on new data centers to protect climate targets. No formal vote was taken on the moratorium; the committee agreed to revisit the issue at the upcoming Parks and City Light Committee meeting, while also continuing discussion of related housing‑process reforms.
The committee discussed Council Bill 121231, which creates a new retail‑rate customer class and conditions of service for data centers whose electricity demand constitutes a large load. Members raised equity concerns about how the new class would affect rates and called for robust community input; no vote was taken on the bill during this session, but it is scheduled for a July 15 council vote. The discussion also touched on data‑center cost responsibility and the need for clear distinctions between rate increases and strategic power agreements.
During the May 20, 2026 Land Use & Sustainability Committee meeting, Council Bill 121214—an ordinance establishing a moratorium on data‑center development—was discussed in detail during the public comment period and subsequent briefing. The committee heard 39 speakers, most of whom supported the moratorium citing environmental and economic concerns; a minority opposed it as overreaching. No vote or motion was taken on the bill, and the committee noted that it would return to future sessions for further deliberation.
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