San Jose residents oppose data centers as California weighs new rules

  • San Jose residents and environmental groups oppose proposed AI data center construction.
  • $3 million to $6 million is San Jose's estimated annual tax revenue per facility.
  • California lawmakers passed bills on grid costs and data center resource transparency.

Residents and environmental groups in San Jose are opposing proposed AI data centers as the California city seeks to become an infrastructure hub. Critics want stricter public review, disclosure of energy and water use, and health and environmental studies, while officials point to estimated annual tax revenue of $3 million to $6 million per facility. Mayor Matt Mahan supports responsible development rather than a halt, but acknowledges concerns about utility bills, water consumption and quality of life. California lawmakers have passed bills requiring large electricity users to share transmission-grid costs and disclose more information about energy and water use. Governor Gavin Newsom must sign or veto the legislation by the end of the month.

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