Hayward Hits Pause on New Data Centers in Unanimous Urgency Vote

Hayward will not approve any new data centers for at least 45 days after the City Council voted 7-0 on Oct. 20 for an interim urgency ordinance. About two dozen speakers turned out, most urging the city to go further, while council members used the pause to request a wide study agenda covering power bills, water, public safety, labor and secrecy in development deals.

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• Data center moratorium adopted 7-0, clearing the six-vote urgency threshold
• Pause runs 45 days, with an extension hearing tentatively set for Dec. 1
• Public comment overwhelmingly supportive, with many speakers demanding a permanent ban
• Council members request study of NDAs, ratepayer protections, public safety and labor agreements
• Business license tax cleanup introduced 7-0, contingent on voters approving Measure CC

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Hayward Freezes Data Center Approvals

The basics: California Government Code Section 65858 allows cities to adopt interim urgency ordinances, temporary land-use freezes that take effect immediately while officials study permanent rules. Adoption requires six votes.

Why it matters: Hayward already hosts four data centers, and staff confirmed interest in two more. The pause gives the city time to write oversight rules before another project reaches approval.

Where things stand: Planning Manager Leah Schmidt said four facilities meet the zoning definition of a data center. Two have operated for more than a decade, one recently came online and one is under construction. All four are clustered within about a half mile of PG&E's eastern substation.

The ordinance's findings focus on cumulative impacts on air, noise, electricity and water. They also cover emergency response for fuel and hazardous materials, and the jobs trade-off of data centers compared with other industrial uses.

The item traces to an Aug. 12 referral from Mayor Mark Salinas, Mayor Pro Tem George Syrop and Councilmember Angela Andrews. On Sept. 15, the council unanimously directed staff to prepare the moratorium. The ordinance was listed on the consent calendar, but the council pulled it for a full presentation and separate vote.

The clock: The initial 45 days can be extended by 10 months and 15 days, then once more for a year, for a maximum of two years. Asked about the extension ladder, the city attorney said there is a hard stop. "You can extend it one more time for a year after that, and at that point you must make a decision about what is the city's policy," said the City Attorney.

Applications vs. approvals: Responding to Councilmember Julie Roche, staff said developers may still submit applications during the moratorium, but those applications cannot be approved. Roche stressed that no project is currently in the pipeline. "I just want to be clear, there are no current applications for data centers," said Councilmember Roche.

Decisions and stakeholder impacts: Mayor Salinas moved the ordinance and Mayor Pro Tem Syrop seconded. "I do support the moratorium. I will be making the motion for the moratorium," said Mayor Salinas.

"I fully support the data center moratorium because it gives us time to better understand the economic, environmental, public health, and cost of living impacts," said Councilmember Ray Bonilla Jr., who also backed stronger oversight of existing facilities.

The vote: For: 7 (Salinas, Syrop, Andrews, Bonilla, Goldstein, Roche, Zermeño), Against: 0, Absent: 0. The pause is a setback for operators and prospective developers. Residents near the eastern substation cluster gain time for study. Existing facilities are not halted.

What's next: Staff will return for an extension hearing, tentatively Dec. 1.

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Residents Push Beyond a Pause

Why it matters: The turnout signals that a 45-day pause may not satisfy the organized coalition behind it. Many speakers framed the moratorium as a first step toward a ban.

Where things stand: Speakers included Evan of Anak Bayan Hayward, Yahya Abu Zaid of the Council on American and Islamic Relations San Francisco Bay Area, Marissa, a Xerces Society volunteer, and Lala, an organizer with Hey Coco and Honor the Earth. Students, longtime residents and a union electrician joined them.

Their concerns spanned water, the electric grid, noise, air pollution, property values and electricity bills. Marlene Gomez Marquez, a 26-year resident, raised several of those worries. Marissa cited noise effects on bees and monarch butterflies. Tom Wong warned of diesel generator spill risk near the marsh. Kevin Alcazar, a union electrician speaking for himself, opposed data centers despite potential personal gain.

Marla Sather praised the ordinance as thorough. She urged a stringent third-party oversight ordinance covering existing facilities, including the Stack SVY-03A site, and cited a UC Berkeley report on water use. Sheila Cho said revenue from Stack should not justify more strain on resources, and she asked each council member to state a position on a ban. Francisco Perez rejected "transparency, accountability and benefits" framing outright and demanded a ban.

The generator allegation: Theresa, a public commenter, alleged that Stack swapped its generators for units with worse emissions and urged the city to pull permits. The claim drew a council response. "I was alarmed by the allegations of the Stack Center having swapped out their generators," said Mayor Pro Tem Syrop.

Staff could not confirm the claim. "We have no information related to that, so I cannot confirm the truth to that," said a city staff member, adding that staff would look into it.

The other side: Robert Stevens said there is no evidence of harm from data centers in California. He argued that CEQA, the California Environmental Quality Act, and local laws already apply, and he questioned why data centers are singled out over other high-power factories.

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Council Lays Out Its Study Agenda

Why it matters: These requests will shape what staff brings back before the extension decision and what permanent rules could follow.

Where things stand: Mayor Pro Tem Syrop proposed "a simple ordinance barring publicly elected and appointed officials from signing NDAs related to development." He also called for a defined community benefits process, possibly involving the Community Services Commission.

Councilmember Andrews asked for a review of ratepayer protections and rate increases, water use, noise monitoring, a CEQA primer, and the city's 2045 carbon neutrality goal. She also sought workforce agreements with labor and the building trades, asking "how do we future-proof those jobs." "I would also like an assessment and recommendations from Public Safety and their response to data centers," said Councilmember Andrews.

Councilmember Roche stressed relying on the partner agencies that already monitor air, water and energy. Mayor Salinas said local governments, "it's council meetings, it's planning commissions," are the front line on data centers, given limited federal action.

Decisions and stakeholder impacts: Labor, ratepayers and environmental advocates each got a line item in the study. The NDA proposal targets confidentiality practices common in data center site selection.

What's next: Councilmember Francisco Zermeño announced that the Sustainability Committee's first meeting on the issue is Nov. 12 at 5 p.m. in Room 2A.

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Tax Cleanup Rides on Measure CC

Why it matters: The council introduced updates to the Business License Tax ordinance (Chapter 8, Article 1) that take effect only if voters adopt Measure CC.

Where things stand: The package includes several changes:
- A gross receipts exemption for leasing affordable housing units, with requirements for owners
- Clarified authority for the tax and license administrator, who is the finance director
- Revised prepayment and postpayment appeal processes
- Updated delinquency penalties and interest, plus code cleanup

The attachment merges existing Measure C language with the new provisions. Because the tax rate is unchanged, "voter approval is not necessary because they don't affect the amount of the tax," said Michael Vigilia of the City Attorney's Office. If Measure CC fails, staff will return with an ordinance based on existing regulations.

The other side: No one spoke on the item. Earlier, in general public comment, Bruce Anthony called the broader tax modernization a significant tax increase that would be passed on to consumers.

Decisions and stakeholder impacts: The council voted 7-0 to introduce the ordinance and adopt a CEQA exemption resolution, on a motion by Councilmember Zermeño seconded by Councilmember Bonilla. Affordable housing landlords stand to benefit from the lease exemption.

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• Consent calendar (items 1–4): Approved 7-0. Councilmember Roche noted the heat pump water heater direct installation program now covers the entire city.
• Closed session: No reportable action on property negotiations; staff received direction on labor negotiations with all bargaining units.
• City finances: Tom Wong questioned depleted reserves and smart trash can costs. TJ of Hayward Concerned Citizens objected to skipping the community agency funding process for FY 2027-28.
• Community events: Council members promoted the Hayward Night Market, Trunk-or-Treat, ZombieCon and Taste of Hayward.
• In memoriam: The meeting adjourned in honor of Jack Bousian, a World War II veteran and artist.

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Looking ahead: The Sustainability Committee takes up data centers Nov. 12 at 5 p.m. in Room 2A, and the moratorium extension hearing is tentatively set for Dec. 1.