REPORT TO COUNCIL
SUBJECT
Title
Staff Presentation and Solicitation of Input on a Comprehensive Approach to Updating City Policies Addressing New Data Center Development [Staff’s Response to Councilmember Jain’s 030 Request, Approved by Council, Regarding New Policy Development on Data Center Water Usage and Demand Side Grid Support Participation]
Report
BACKGROUND
030 Request and Comprehensive Approach
At the August 18, 2026 City Council meeting, Councilmember Jain introduced a Council Policy 030 request to create a policy that limits the type and quantity of water used by data centers and new data centers in Santa Clara (Attachment 1). He also indicated interest in information on Demand Side Grid Management participation by the CAISO or the State of California. City Council approved a motion to agendize this 030 request for discussion at a future meeting.
As discussed later in this report, Silicon Valley Power (SVP) has not accepted applications for new data centers since 2023. During this time, when no new data center load applications have been accepted, the City has been working to improve the policies and approval processes for any future planning applications or electrical load requests from data centers. Beginning August 12, 2026, staff convened an interdepartmental working group to analyze all aspects of existing City standards and practices regarding data center development and operations. The ultimate goal of this effort is to develop a clear understanding of existing data center policies and procedures, identify areas for improvement, and develop a process for implementing such improvements. In addition to enhancing the City’s regulations, the policy improvements would also include ways to increase community benefits from data center projects. This work is anticipated to be completed towards the end of 2027.
This report and the staff presentation at the October 6 City Council meeting will articulate how staff plans to address Councilmember Jain...
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