Politics

Bay Area Cities Pass Data‑Centre Moratoriums Amid Midterm Election Fervor

By Saumya Roy

Seven Bay Area cities, including San Francisco, Oakland, and Richmond, have enacted temporary moratoriums on new data‑centre construction as the region’s rapid AI‑related growth raises concerns about energy use, water consumption, and local temperatures. Oakland’s ordinance, adopted on Oct. 6 after protests outside City Hall, limits data‑centre development for 45 days, with the possibility of extension. The moratoriums come as local politicians use the issue to appeal to voters ahead of Tuesday’s midterm elections. In the race to replace long‑time Democratic Representative Nancy Pelosi, San Francisco Supervisor Connie Chan and state Senator Scott Wiener have taken opposing stances: Chan supports a nationwide moratorium until AI regulation is in place, while Wiener opposes any blanket ban, citing potential regulatory drawbacks.

Activists argue that data centres, which house the servers that run AI services such as Anthropic’s Claude and OpenAI’s ChatGPT, require continuous power and large amounts of water for cooling. The heat they emit can raise land surface temperatures by up to 9 °C (16 °F). Rising power costs have led some Oakland residents to consider cutting power, according to Carlos Gutierrez of Communities for a Better Environment.

Nationally, more than 3,000 data centres operate, with over 1,500 in development, according to Pew Research Center. A University of Southern California poll showed Wiener leading Chan 47 % to 41 % in mid‑October. Political analyst Shum Preston notes that public opposition to data centres is widespread—63 % of U.S. voters surveyed by CNBC in October opposed building a data centre within 16 km (10 mi) of their homes.

Critics point to outdated city definitions of “data centre” and the short 45‑day review period as obstacles to effective regulation. Supervisor Shamann Walton, who sponsored San Francisco’s ordinance, said the 2001 planning code’s definition of data centres as “internet service exchanges” does not reflect current technology, hindering accurate counts and monitoring of power and water use. Environmental lawyer Roger Lin of the Center for Biological Diversity argues that the moratoriums do not allow enough time for comprehensive environmental assessments, and nondisclosure agreements often prevent local authorities from accessing data‑centre impact information.

Supporters of the AI industry highlight economic benefits, citing Anthropic’s upcoming IPO as a potential source of billions for the U.S. economy. However, critics fear that the growth may favor wealthy investors rather than the broader Bay Area community, which already experiences some of the nation’s highest and fastest‑growing rental prices. A resident at a San Francisco City Hall hearing expressed frustration, stating, “This city is less for humans and more for robots and billionaires.”