San José Leaders Demand Data Centers Deliver Community Benefits, Meet Stronger Design Standards
Proposed expansion of the City’s uniform standards would explore investments in affordable housing, clean energy, local workers and neighborhood improvements
FOR IMMEDIATE RELEASE
August 10, 2026
Media Contact:
Tasha Dean, Chief Communications Officer, Office of Mayor Matt Mahan
SAN JOSÉ, CA - Mayor Matt Mahan and Councilmembers Pamela Campos, David Cohen, Peter Ortiz, and Domingo Candelas have proposed expanding and formalizing San José’s existing approach to data centers and other large-load projects, with clearer and stronger expectations for community benefits, architecture and site design.
Potential investments could include funding for affordable housing, workforce development, improvements to parks and other public spaces, and home-energy upgrades such as solar panels and battery storage. City staff will also propose options for tax revenue generated by data center projects to be reinvested in communities surrounding project sites. Additionally, the City will evaluate options to require community benefits associated with these projects such as labor standards, local hiring and workforce-development opportunities associated with project construction and operation.
“We’re expanding our goal from mitigating impacts of data centers to holding corporations accountable for making a positive impact in the lives of our residents,” said Mayor Matt Mahan. “We can’t just bury our heads in the sand, say ‘no’ and push the jobs and industries of the future to states with fewer environmental safeguards. And we also can’t allow unfettered growth without protecting the people and places that will be impacted. We need to do what California does best: lead the nation forward with a blueprint for responsible development.”
The direction also calls for the City to evaluate architectural and site-design standards for data centers and other large-load projects, including building appearance, visual impacts, green roofs, solar panels and compatibility with surrounding neighborhoods and land uses.
“City leaders have a responsibility to share power with our communities about what gets built in our neighborhoods and how those decisions impact our residents,” said Councilmember Pamela Campos (D2). “As data center developments emerge across San José, we must ensure their tax revenue is reinvested and benefits those most impacted. Our neighborhoods deserve robust community benefits as well as strong upgraded standards to all data center applications, including those currently under review.”
“We’ve negotiated meaningful community benefits on a project-by-project basis, but it’s important to ensure that future projects also contribute in a meaningful way,” said Councilmember David Cohen (D4). “Alongside strong environmental standards, we must codify a clear, transparent framework so that our community knows what it can expect from data center developments and that every project is held to the same high standard.”
Once the new standards are adopted, the City would also review projects already in the development pipeline to determine whether they meet the new expectations and work with applicants on changes that could improve their implementation with the goal of making a positive impact on the lives of San Jose residents.
“Across the country, we’ve seen the consequences when government fails to act and bad actors are allowed to build data centers at the expense of workers, communities, and the environment. We will not let that happen in San José. Our residents deserve a seat at the table, and we are committed to working alongside our communities to ensure these facilities are built responsibly, with the strongest possible labor and environmental standards,” said Councilmember Peter Ortiz (D5).
“As elected officials, we are entrusted by our residents to make decisions that reflect the best interests of our community,” said Councilmember Domingo Candelas (D8). “That means carefully considering how new data center developments will affect our neighborhoods and protecting the quality of life that makes San Jose a great place to live, work, and raise a family.”
San José is currently tracking 12 applications for projects requiring 20 megawatts of power or more. These projects can support the data-processing infrastructure on which residents, businesses and emerging technologies increasingly rely, while generating significant revenue for essential City services. However, the economic benefits of development should not come at the expense of surrounding neighborhoods or shift environmental, infrastructure and quality-of-life costs onto residents.
The expanded direction is part of an ongoing effort to codify and strengthen the City’s approach to data centers and other large-load projects. In June 2026, the Rules and Open Government Committee approved a memorandum directing the City Manager to bring forward uniform standards and best practices for City Council consideration this fall.
As part of that work, the City is conducting outreach with residents, labor representatives, environmental advocates, developers and other stakeholders. The community-engagement process will help determine which benefits should be considered as part of future project approvals and how those benefits can respond to local needs.
By bringing existing practices into a clearer, more consistent citywide framework — and incorporating community benefits and stronger design expectations — San José aims to support responsible economic growth, protect neighborhoods and ensure that communities hosting major new developments share in their long-term benefits.
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About the City of San José
With nearly one million residents, San José is the largest city in the Bay Area and one of the nation's most diverse and creative. San José’s transformation into a global innovation center in the heart of Silicon Valley has resulted in the world's greatest concentration of technology talent and development.