San Jose has not paused, capped, or banned data centers. It is one of California's largest data-center markets and is actively recruiting them. Instead of a moratorium, the City Council in June 2026 directed staff to draft uniform data-center standards, expected back in December 2026.
San Jose hosts dozens of data centers — the most in California after neighboring Santa Clara — with 20 operating, 6 under construction, and 5 more in entitlement review. The city is courting large energy users, including a PG&E agreement to expand grid capacity for data-center growth. There is no moratorium, cap, or ban. On June 10, 2026, the City Council's Rules and Open Government Committee, on a memo from Mayor Mahan, directed the City Manager to develop uniform standards for data-center projects, aimed at environmental mitigation, community engagement, and cleaner infrastructure. Those standards are expected before the full Council in December 2026. Until then, projects proceed under the existing Special Use Permit process and CEQA review.
There is no moratorium to enforce. A data center that proceeds without an approved Special Use Permit or required CEQA clearance is a zoning violation enforced by San Jose Code Enforcement until the use conforms.
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