Google data center could be approved before San Jose sets standards

San Jose could approve at least one significant data center before its development standards are finalized. This would allow the developer to skirt limitations on noise, emissions, audits and more in spite of the mayor promising to implement the strictest data center standards in the U.S.

Google’s data center project in Alviso — which the company has referred to as a research and development lab — could come up for approval before the end of the year, Deputy City Manager Manuel Pineda said. The project located at 5087 Disk Drive would require 250 megawatts — enough to power 250,000 households. Advocates fear developers will aim to push projects through before standards are set, because any projects approved before the standards are finalized will be exempt. The City Council is expected to vote on the development standards in December.

Mayor Matt Mahan declined to comment on how the city will ensure data center projects mitigate health and environmental concerns if approved before the standards are in place.

Since city staff began working on the standards in June, five projects have been submitted within a span of two months. There are currently 16 data centers and large use energy projects that have either been approved or are in the pipeline, according to the city’s website.

Ellina Yin, founder of civic engagement nonprofit Dreaming Collaborative, said councilmembers have tried to assure residents that existing and new data center applications won’t be pushed through before the standards are established.

“There is definitely a rush, and I don’t even know how many more (projects) that’s not listed on the website,” Yin told San José Spotlight. “So it seems like there are conflicting messages of trying to calm the public down and assuring that there is a fair process — yet we’re seeing a lot of applications come in.”

In the proposed standards, data center developers will be encouraged to enroll with San Jose Clean Energy, which supplies renewable power. Diesel backup generators must follow the strictest federal emission standards, and can only run when there are power outages. Operators will track their own water and electricity usage and submit annual reports to the city, and the city will require an independent audit every five years.

Councilmember David Cohen, whose District 4 includes the Google project, said he hasn’t heard when the tech giant or the city might advance the project.

“I expect any project that is approved to have to meet the standards we set,” Cohen told San José Spotlight.

Marika Krause, spokesperson for San Jose Planning, Building and Code Enforcement, said the Google project is still under review and no hearings have been scheduled yet.

“It could be heard at a (Planning) Director’s Hearing as early as December,” she told San José Spotlight. “The environmental review is not published, but will be ahead of any hearing or consideration.”

One hearing officer presides over the planning director’s hearing. Any project approved by the planning director is not required to be heard by the Planning Commission unless there is an appeal. There will be an opportunity for public comment at the director’s hearing.

“These director hearings are not very well publicized,” Yin said. “Because AI data centers are such a big issue, they should be approaching it much differently. But I’m not seeing massive publication in any of the councilmembers’ newsletters or their social media. It’s really hard to follow all of the information.”

Google’s plans at 5079 and 5087 Disk Drive call for demolishing an existing warehouse and parking lot to construct up to three research and development facilities across nearly 483,000 square feet.

But architectural blueprints for the project show it has all the trappings of a data center — an onsite substation and switching station with three transformers, multiple generator yards, cooling stations and more.

The city has also referred to the site as a “large-energy use project” distinct from a data center. Officials don’t plan to do a full environmental review of the proposed project, and instead will rely on prior California Environmental Quality Act reports from 2000 and 2013.

However, the California Public Utilities Commission (CPUC), which sets utility rates and would allow power to the site, sees the project as a data center, according to its documents.

Google would also need approval from the commission to operate, but the regulatory body has been delaying a decision since the summer.

Staff at the state agency are recommending commissioners approve an agreement to power the Google project. In return, Google would provide an upfront capital advance of $150 million for transmission network and grid upgrades to support its massive demand. The tech giant would ultimately be reimbursed in full over a span of 15 years, which would be paid by ratepayers, according to the CPUC — and would mean households will see rate increases in the future.

The commission is set to hear the agreement on Nov. 19.

Contact Joyce Chu at [email protected] or @joyce_speaks on X.