On June 10, 2026, the City of San José Rules and Open Government Committee adopted a recommendation directing the City Manager to:

1. Establish a set of uniform standards and best practices for data center projects in the City of San José. These standards should build upon existing local and state environmental regulations and help mitigate potential impacts related to:  
   1. Energy consumption and energy sourcing;  
   2. Water usage, including strategies to reduce reliance on potable water through recycled water infrastructure, closed-loop systems, or other efficient technologies;  
   3. Air quality, backup power generators and  
   4. Other environmental factors, including greenhouse gas emissions, noise, and water quality protections.  
   5. The standards should also outline a clear and consistent process for community notification and engagement for new data center projects, building upon existing City outreach policies and processes (Council Policy 6-30).  
2. Support statewide legislation like Senate Bill 887 that supports local jurisdictions in creating cleaner infrastructure for data center development, including but not limited to recycled water/purple pipe infrastructure, cleaner energy, transmission infrastructure, with the goals of lowering environmental impacts, protecting ratepayers, and expanding access to economic opportunities.

On August 12, 2026, the City of San José Rules and Open Government Committee adopted a second recommendation directing the City Manager to:

1. Include options for requiring community benefits associated with these projects. These may include but are not limited to public space improvements, clean energy programs, labor standards, local hiring and work-force development opportunities, affordable housing, and opportunities to generate additional use tax revenue.
2. Evaluate a possible mechanism for investment of a portion of tax revenue generated by data centers within a nexus area around data center sites.
3. Evaluate architectural and site design standards for data centers and other large-load projects, including, but not limited to, building design, visual impacts, green roofing, solar panels, and integration with surrounding uses.
4. Upon adoption of San Jose's standards, evaluate and return to council with an assessment of whether any projects in the pipeline would not be considered compliant under the new standards and negotiate with them over possible changes that would improve their implementation.

The City is actively working on developing these standards, as shown in the timeline below. We will keep this page updated with opportunities to engage in the process. 

The list of Data Center and other Large Energy-Use Projects currently under review and recently approved applications can be found on this page: https://www.sanjoseca.gov/your-government/departments-offices/planning-building-code-enforcement/planning-division/data-center-and-other-large-energy-use-projects#!/

Current Community Outreach and Engagement Plan and Schedule:

• To date: Staff have conducted small-group meetings with stakeholder groups, including representatives from:
  • Sierra Club
  • Mothers Out Front
  • IBEW Local 332
  • Pipefitters UA Local 393
  • Silicon Valley Youth Climate Action
  • AllAI Consulting
  • Sheet Metal Workers Local 104
  • Sprinkler Fitters UA Local 483
  • South Bay Labor Council
  • Working Partnerships
  • Santa Clara & San Benito Counties Building & Construction Trades Council
  • San Jose Chamber of Commerce
  • National League of Cities
  • Santa Clara Valley Water
  • Silverleaf Neighborhood Association
• August 19: Community listening session from 6:00–8:00 p.m. in the City Hall Wing Rooms (See recording and slides below).
• August 27: Developer roundtable to discuss the proposed uniform standards with members of the development community.
• August 31–September 11: Small-group roundtables with key stakeholders and community members to workshop the proposed uniform standards. Members of the public interested in participating will be offered multiple dates to choose from (see interest link below).
• September 28: Labor roundtable to discuss the proposed uniform standards with labor representatives.
• September 30: Environmental roundtable to discuss the proposed uniform standards with environmental interest groups.
• Late September: Stanford-led Deliberative Polling session to assess how public opinion changes after participants receive expert information and discuss the issue collectively. Polling results will help inform the draft standards.
• Late September: City Council briefings to discuss the draft standards.
• October 7: Townhall with District 2 
• October 15: Final large-format community session to present the final draft standards, answer questions, and gather feedback and comments.
• Mid-November: City Council briefings on the final proposed standards.
• December 1: Tentative City Council meeting date for presentation of the proposed Data Center and Large Energy Project Uniform Standards.

Data Centers and Large Energy Project Proposed Uniform Standards Community Meeting

October 15, 6:00-8:00PM
San Jose City Hall, Council Chambers (with overflow available in the Rotunda)
200 E. Santa Clara St., San Jose, 95113

City staff will present the proposed Uniform Standards and provide details on each requirement or guideline. The community can participate and share feedback through both in-person and online commenting. For those unable to attend live, online viewing will be made available on the City's YouTube channel.

Data Center and Large Energy Project Uniform Standard - Community Feedback Form

As the City develops clear and consistent standards for future data centers and large energy projects, we are seeking input from community stakeholders. Your feedback will help inform standards that consider economic development, energy use, environmental impacts, public health, infrastructure needs, and neighborhood quality of life. 

💬Submit your feedback here: https://forms.cloud.microsoft/g/e0gffa3r1u 💬

Community Listening Session

Occurred on August 19, 6:00-8:00PM
San Jose City Hall, Committee Wing Rooms
200 E. Santa Clara St., San Jose, 95113

A recording of this event can be viewed here: https://sanjoseca.zoom.us/rec/share/85I-sJlDNTECMc7Zhs_NpIbvxiMxRD6lNmPv_mIJT6VJLwWzFDXi5wusqc7PKW4.QpzbhsbGUzU5N8Jr

Download a copy of the slides presented: 2026_08_19_Community Listening Session (pdf)

Small-Group Working Sessions 

Between August 31 and September 14, 2026, City staff hosted 8 working sessions to present a draft list of proposed standards and gather community input. Out of 66 individuals who registered interest and received invitations, a total of 48 participants actively attended the meetings to share feedback and ask questions. Following the sessions, a video recording of each meeting was distributed to all respective attendees to support ongoing collaboration.

Calculating Projected Utility User Tax for Large Energy Users

As the City develops standards for data centers, we are also evaluating their potential fiscal impacts, including Utility User Tax (UUT) revenue from electricity use. To make that analysis transparent, the City is publishing the methodology used to estimate these revenues.

Because UUT is collected by utility providers such as PG&E and San José Clean Energy and remitted to the City in aggregate, the City does not receive customer-level UUT data. Instead, we estimate UUT associated with a data center’s electric load using the following assumptions:

Electric load (in Megawatts) × annual hours × 62% usage rate× 90% load factor × estimated electricity rate × 5% UUT rate

The 62% usage rate is consistent with California Energy Commission data center load forecasting. The analysis currently uses a combined 2026 large industrial electricity rate of approximately $0.23 per kWh.

For example, a 99 MW data center would be estimated as follows:

99 MW × 8,760 hours × 1,000 kW/MW × 62% × 90% × $0.23/kWh × 5% = approximately $5.6 million in annual UUT revenue.

These figures are estimates, not guaranteed revenues. Actual collections will vary based on electricity consumption, utility rates, and operating conditions.

As a reasonableness check, the City also compared this methodology with recent citywide electricity UUT collections. The City’s approximately 1,000 MW electric load generated about $79.6 million in UUT in FY 2024–2025, with approximately $84 million estimated for FY 2025–2026. That equates to roughly $7.5 million to $8.4 million in annual UUT revenue per 100 MW of electric load, slightly above the City’s more conservative data center estimate.

(Source: "City Of San Jose 2025-2026 Adopted Operating Budget General Fund Revenue Estimates." Utility Tax Revenue - Page 245. https://www.sanjoseca.gov/home/showpublisheddocument/126189/638978553689570000)