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Milpitas, CA Data Centers & Crypto Mining: Data Center Zoning & Siting (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Permitted zones
M1, MP, BPRD (by right, no CUP)
Excluded zone
M2 Heavy Industrial (not allowed)
Parking ratio
1 space per 1,500 sf
CO commercial zone
Conditional Use Permit only
Governing table
Table B.10.020-A, Zoning Ordinance

Summary

In the City of Milpitas, a Data Center is a by-right permitted use in the M1 Light Industrial, MP Industrial Park and BPRD Business Park Research and Development zones under Table B.10.020-A of the Zoning Ordinance, but the M2 Heavy Industrial zone excludes it entirely. Required parking is set at one space per 1,500 square feet of floor area.

"P" = Permitted Use / "MC" = Minor Conditional Use Permit approved by Zoning Administrator required / "MCS" = Minor Conditional Use Permit approved by Director required / "C" = Conditional Use Permit required / "-" = Not Allowed Use M1 M2 MP BPRD Additional Regulations ... Data Center P - P P n/a ... Land Use Classification 1 Minimum # of Spaces 2 ... Data Center 1 per 1,500 sf

Full Breakdown

Milpitas' Zoning Ordinance defines a Data Center as 'a facility dedicated to the storage of computer and information technology systems and associated components for the storage, retrieval, and transmittal of electronic information' (Chapter E.4, Definitions of Uses). Table B.10.020-A (Industrial Zones Use Regulations) lists the use as Permitted, with no discretionary review, in the M1 Light Industrial, MP Industrial Park and BPRD Business Park Research and Development zones, while the M2 Heavy Industrial zone excludes it entirely. That is a narrower footprint than most industrial uses on the same table, several of which, such as Industry, General and Warehousing and Distribution, are allowed across all four zones.

Outside the industrial title, Table B.6.020-A (Commercial Zones Use Regulations) also lists Data Center as a use, but only in the CO Administrative and Professional Office Zone, and only with a discretionary Conditional Use Permit reviewed under Subsection D.4.030 (Use Permits); it is not allowed in the C1, C2 or HS commercial zones. Table C.6.050-A (Required Number of Vehicle Parking Spaces), adopted under Section C.6.050, sets a Data Center's minimum parking at one space per 1,500 square feet of floor area, a lower ratio than the citywide industrial default of one space per 2,000 square feet of floor area plus one per 300 square feet of office area, reflecting the low staffing levels typical of server-hall space.

A project that does not fit the by-right industrial siting, or that proposes a data center in a zone the tables mark with a dash, would need the Director's determination of a similar use or a Planning Commission Conditional Use Permit consistent with Subsection D.4.030.

Violations & Fines

Building or operating a Data Center in the M2 Heavy Industrial zone, or in any commercial zone without the required Conditional Use Permit, is a zoning violation. Planning and Neighborhood Services can deny occupancy, and Code Enforcement may pursue the matter as a zoning violation and public nuisance under the Zoning Ordinance's enforcement provisions until the use is brought into compliance or relocated to a permitted zone.

Frequently Asked Questions

Which Milpitas zones allow a data center by right?
Table B.10.020-A of the Zoning Ordinance permits a Data Center outright in the M1 Light Industrial, MP Industrial Park and BPRD Business Park Research and Development zones. No conditional use review is required in those three zones, though building, fire and grading permits still apply.
Can a data center be built in Milpitas' Heavy Industrial zone?
No. Table B.10.020-A marks the M2 Heavy Industrial zone as not allowed for a Data Center use, the only industrial zone where the use is excluded entirely.
How much parking does a Milpitas data center need?
Table C.6.050-A requires one parking space per 1,500 square feet of floor area for a Data Center, lower than the one-per-2,000-square-foot default that applies to most other industrial and research uses in the city.
Can a data center locate in a commercial zone in Milpitas?
Only in the CO Administrative and Professional Office Zone, and only with a discretionary Conditional Use Permit under Table B.6.020-A. The C1, C2 and HS commercial zones do not allow the use at all.

Sources & Official References

Other rules in Milpitas

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