The Hayward City Council is scheduled to vote Tuesday on a proposed temporary moratorium that would halt consideration and approval of new data centers within city limits for up to two years. The pause is intended to give city staff time to evaluate the cumulative economic, environmental and public-health effects of data center development in Hayward.
Why the pause now?
Data centers are facilities designed for high-density computing, with specialized requirements for uninterrupted power and cooling. The rapid expansion of artificial intelligence and cloud computing has increased demand for larger-scale and hyperscale centers with growing energy needs. In Hayward, city staff point to several existing and soon-to-open facilities clustered near Pacific Gas and Electric Co.'s Eastern Substation in the southwestern portion of the city’s industrial crescent.
Existing and approved facilities near the substation include a 24-megawatt (MW) site known as SF09, a 35-MW site called SF11, a 49-MW facility identified as Hayward Exchange @92, and a 76.6-MW facility under construction named Stack Data Center (SVY03A). Together, these projects represent hundreds of megawatts of load concentrated in Hayward’s industrial west side.
| Facility | Capacity (MW) | Approx. site size |
|---|---|---|
| SF09 | 24 | 10.9 acres |
| SF11 | 35 | 4.24 acres |
| Hayward Exchange @92 | 49 | 6.57 acres |
| Stack Data Center (SVY03A) | 76.6 | 11.3 acres |
Potential new proposals
City staff said developers have approached Hayward about applications for two additional data centers, each proposed at 99 MW, sited within roughly a half-mile of the city’s existing cluster near Arden Road and Corporate Avenue. The moratorium, if adopted, would temporarily block the review and approval of those and other new data center proposals while the city conducts a broader analysis.
What the moratorium would study
The staff report recommends the moratorium to allow time to examine:
- Impacts on energy and water supplies given the high demands of data centers;
- Air quality and potential industrial noise increases tied to cooling and backup power systems;
- City emergency response capacity and public-health considerations;
- Consistency with the city's economic development priorities and long-term land-use planning.
City staff described the moratorium as intended to "call a time-out" while officials monitor and analyze the cumulative impacts of current and potential future data center development.
Under state law, local governments may adopt temporary moratoria to provide time for planning and environmental review. City documents indicate the proposed moratorium could remain in place for as long as two years, a period intended to allow for comprehensive study, community input and potential updates to zoning or environmental safeguards.
Hayward’s industrial crescent on the west side includes major infrastructure and a concentration of industrial uses, and the Eastern Substation is a key node for delivering power to those facilities. The proximity of multiple high-capacity data centers near a single substation raises questions about cumulative strain on the electrical grid and the need for regional utility coordination.
City staff have posted the council staff report and related materials on the City of Hayward’s legislative website and created a Frequently Asked Questions page about data center development. Those materials outline the technical and policy issues the city intends to study should the moratorium be approved.
For residents, the council's vote could influence not only how the industrial land in that part of Hayward evolves, but also the city’s priorities for energy resilience, environmental protection and industrial jobs. Council members are expected to weigh those trade-offs at the meeting as they consider whether to adopt a temporary pause on new data center approvals.
The item is scheduled for the council’s regular meeting Tuesday; members of the public may view materials and find meeting details on the City of Hayward’s legislative website.
