Members of the San Francisco Board of Supervisors are proposing a 45-day pause on new data center approvals, saying the city needs updated rules to address concerns about water use, energy demand, pollution, noise and other impacts tied to the rapid growth of artificial intelligence.
Supervisor Shamann Walton introduced the urgent ordinance Monday with co-sponsors Connie Chan, Jackie Fielder and Chyanne Chen. The proposal would pause city approvals while the Board of Supervisors and Planning Department study the impacts of data centers and develop longer-term rules.
“We are seeing data centers pop up near residential communities all across the United States, and we have seen the impacts, from polluting the water supply to the noise these facilities bring to the neighborhoods closest to them,” Walton said. “We cannot use 2001 rules to regulate 2026 technology.”
San Francisco currently regulates data centers under the Planning Code’s definition of “internet service exchange,” a designation adopted in 2001, before the rise of generative AI.
Under the current rules, data centers are typically approved through a conditional-use process at the Planning Commission. Several facilities have already been approved, including in the Bayview and South of Market neighborhoods, according to the supervisors.
Walton and his co-sponsors say those areas already face environmental concerns, including air pollution.
“We are seeing data centers pop up near residential communities all across the United States, and we have seen the impacts. … We cannot use 2001 rules to regulate 2026 technology.”
Supervisor Shamann Walton
The proposed moratorium would be the first step toward permanent restrictions on new data centers in San Francisco. It would be authorized under state law that allows local governments to temporarily halt approvals while studying permanent zoning controls in response to an immediate threat to public health, safety or welfare.
The proposal comes as other cities and states move to restrict data center development amid concerns about the industry’s growing demands for electricity, water and land. Gilroy, in Santa Clara County, approved a 45-day moratorium on Monday on new data center applications.
“We need to take the time to fully vet the consequences of having a data center in the community,” Walton said. “Until this happens, no data centers should be approved in San Francisco.”
Chan said she supports the moratorium while the city develops protections for residents, workers and the environment.
“As legislators, we have the responsibility to take a pause to understand the implications of data centers on our neighborhoods, and develop legislation that will put our communities first and protect our environment and precious resources,” Fielder said.
If approved, the moratorium would take effect immediately and remain in place for 45 days unless extended under state law or replaced by permanent regulations.
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