Bay Area cities pause data centre construction ahead of elections

At least seven cities in the San Francisco Bay Area have adopted temporary construction moratoriums for data centres in the final two months before the November 3 vote. These restrictions place a hold on new infrastructure projects that support the artificial intelligence industry. Local officials are responding to growing public concern over the environmental footprint and household energy costs associated with these facilities.

The movement gained momentum in October. In Oakland, demonstrators wearing cardboard robot costumes gathered outside City Hall to protest rising electricity bills and grid strain. Activist Carlos Gutierrez noted that some residents were considering disconnecting their power due to price increases. Following days of protests, Oakland approved its moratorium on October 6. San Francisco also passed a similar pause in early October.

The debate has created a split between the two Democratic candidates running for the congressional seat vacated by Nancy Pelosi. State Senator Scott Wiener opposes a blanket ban, arguing it could weaken AI regulation. San Francisco Supervisor Connie Chan supports a nationwide moratorium until responsible AI rules are established. A University of Southern California poll conducted in mid-October showed Wiener leading in the race, with 47 percent support compared to Chan's 41 percent.

Data centres host the chips and servers that power popular AI services. These facilities require electricity around the clock and substantial water for cooling. Even with cooling systems, their heat emissions can raise land surface temperatures by up to 9 degrees Celsius, or 16 degrees Fahrenheit. The region hosts major AI companies including Anthropic, OpenAI, and Meta, and local growth has been credited with helping revive the economy.

San Francisco political analyst Shum Preston observed that the moratoriums faced little resistance at local hearings. He suggested developers are avoiding difficult confrontations before the election and may become more vocal once the temporary restrictions expire. The initial pauses in San Francisco, Brisbane, and Oakland last 45 days, with the possibility of extensions.

Officials face challenges in assessing these facilities because current planning codes use definitions dating to 2001. San Francisco Supervisor Shamann Walton, who sponsored the city's ordinance, said this outdated language makes it difficult to count data centres and scrutinize their resource consumption. Roger Lin, a senior attorney at the Center for Biological Diversity, questioned whether 45 days allows for sufficient environmental study. He also noted that nondisclosure agreements can keep facility details away from local air quality boards.

The United States currently has more than 3,000 operating data centres and over 1,500 in development, according to Pew Research Center data. A CNBC survey found that 63 percent of registered voters oppose having a facility built within 10 miles of their homes. Anthropic is preparing an initial public offering expected to raise billions of dollars, while critics question whether this growth benefits the wider Bay Area amid rapidly rising residential rents.