Santa Clara Shelves Data Center Moratorium Bid After Labor Pushback

Santa Clara's City Council spent more than an hour on Oct. 20, 2026, debating whether to pause new data centers in a city whose public utility powers much of Silicon Valley's server economy. The council voted to note and file the request after building trades workers urged standards instead of a moratorium, though the result was first announced as failing before a revote. The same session filed a contested FIFA leak investigation 4-3 and eliminated resident Senior Center fees.

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• Data center moratorium request shelved on a confusing revote after waves of union opposition
• FIFA memo leak probe filed 4-3: investigators found no leak through city systems, but critics questioned its scope
• Senior Center fees eliminated for residents, with $455,000 for repairs and $7.6M held in reserve
• NDA review expanded citywide after the mayor called a data-center-only focus hypocritical

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Data Center Pause Dies on Revote

Why it matters: Data centers are among the largest power customers on Silicon Valley Power, Santa Clara's city-owned utility. The vote keeps the city on a slower track toward permanent standards rather than an immediate pause.

Where things stand: Councilmember Karen Hardy used a Council Policy 030 request, the process members use to ask that an item be placed on a future agenda. She sought an update on power allocation for large electrical loads and the option of a moratorium while the city reviews water, air quality and power impacts.

"What this is, is for us to just put the brakes on any new data centers," said Hardy.

City Manager Jovan D. Grogan said the city stopped accepting large-load power requests in 2023. He said eight projects that lack conditional use permits have system impact studies, and that staff will return with information by March 2027. City Attorney Glen Googins said an urgency moratorium requires a four-fifths council vote and urgency findings. He noted that a non-urgency alternative exists.

Labor's show of force: Building trades and union speakers dominated public comment. They included representatives from UA Local 393, IBEW 332, Operating Engineers and the Santa Clara and San Benito Counties Building and Construction Trades Council. David Beene, the council's executive director, urged staff to finish its research and write standards. Doug Block of Silicon Valley MEPS asked the city to follow San Jose's standards-based approach.

"I urge you to reject the unnecessary moratorium and choose collaboration, responsible standards, and continued opportunity for our local workforce," said Scott Reese, business representative, UA Local 393.

The other side: Some residents and a commissioner wanted a pause or permanent rules. "A moratorium for 45 days isn't going to hurt anybody," said Eric, a Planning Commission member speaking for himself. A public commenter named Jay called a 45-day moratorium ineffective and urged permanent performance standards or an outright ban. Public commenter Elaine Lee said an Oct. 6 council motion already covered the topics.

Decisions and stakeholder impacts: Councilmember Raj Chahal moved to note and file the request, and Vice Mayor Albert Gonzalez seconded.

"I think moratorium is sort of a scary tactic," said Chahal.

"I don't see that we need to push staff within 30 days to bring back something that we really don't need at this point," said Gonzalez.

Councilmember Kelly Cox and Mayor Lisa M. Gillmor backed the motion. Councilmembers Suds Jain, Hardy and Kevin Park argued against it. The mayor first announced that the motion failed, then called a revote, and it passed. No numerical tally was announced. Trades unions keep their pipeline of construction work. Residents worried about cumulative air and water effects must wait for staff's 2027 policy work.

What's next: Staff is expected to return with data center information by March 2027.

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FIFA Leak Probe Filed, Doubts Linger

Why it matters: A split council accepted an investigation that found no leak through city systems. Members and critics argued the probe never examined the people most likely to have leaked.

Where things stand: Charla Welch, principal investigator, Renne Public Law Group, reported a forensic review of city Outlook, calendar and Teams files. The review covered the period around the May 2, 2024, confidential FIFA risk memo and a May 17 San Francisco Chronicle article. She found no forwarding of the memo and no sharing to personal accounts.

"No one connected with the city or stadium authority as city personnel had used the city software to leak this information," said Welch.

Welch said print records can't be checked. She said self-reported calendars show contact with the Chronicle by Mayor Gillmor and former Councilmember Watanabe. Asked whether anyone verifies council members' public calendars, Grogan answered: "It is the honor system."

The other side: Councilmembers Jain, Park, Hardy and Chahal asked several questions:
- Why was the memo emailed rather than sent through the secure Intralinks platform?
- Why were closed session notes, private emails and council members themselves not examined?
- Why did the work take so long?

Staff blamed an administrative error in transferring email archive files, known as PST files, and a contract scope issue. Grogan said the firm was retained in March 2026. Googins said the council was not excluded from the probe but was not its target, and that staff initiated the investigation.

"How is it possible that this city let an investigation go for 3 years before it was started?" asked Park.

Before the vote, Grogan pushed back: "That is just factually inaccurate. In fact, the investigation was just completed."

Public commenter Anthony Becker attacked the probe and said council members were never interviewed. A Silicon Valley Voice reporter named David asked about cost, contract approval, witness interviews and whether the report will be released.

Decisions and stakeholder impacts: The council noted and filed the verbal report. For: 4, Against: 3, with Park among the no votes. The other two no votes were not identified. Questions about the probe's cost and the report's public release went unresolved.

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Seniors Win Free Center Access

Why it matters: Ending the $37 annual resident fee adds roughly $92,000 a year in general fund subsidy. It also settles a dispute some seniors framed as a broken promise.

Where things stand: The item was pulled from the consent calendar. It reallocates part of a $20M general fund reserve, which Ken Lee, Acting Assistant City Manager and Chief Financial Officer, said came largely from excess sales tax revenue. The package does three things:
- Waives resident fees and issues credits to residents who already paid.
- Directs $455,000 to Senior Center repairs.
- Holds $7.6M in reserve for convention center needs, pending financial reports due next month.

Staff also noted that Measure I includes about $9.5M for Senior Center work. Jain pressed on the convention center roof and lifeguard shortages.

The other side: Most speakers backed the waiver. Barbara Estrada said the city had committed to no fees. Emily Adorabile of the Santa Clara Women's League said the league had been told it could not pay fees on seniors' behalf.

"Your vote to stop the membership fees and therefore to allow equitable access to everyone is so important," said Wanda Buck, a public commenter.

One senior resident said equipment maintenance had improved with fees in place. That speaker asked for dignified hardship waivers and a say in how the $455,000 is spent.

Decisions and stakeholder impacts: Gonzalez moved and Hardy seconded, and the motion passed unanimously.

"This is not a hill I'm going to die on," said Jain.

"And so this doesn't address a long-term problem," said Cox.

Park argued that government shouldn't be run like a business. He urged adding donation boxes and giving a commission a role in Senior Center decisions.

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NDA Review Goes Citywide

Where things stand: Hardy cited AB 1370, a new state law, in asking for a policy barring non-disclosure agreements with stand-alone data centers. Staff said the city has signed no data center NDA since 2021 and none is active. Staff warned that a blanket ban could conflict with confidential system impact studies and state law.

The other side: Gillmor called a data-center-only focus hypocritical, given the FIFA and Super Bowl NDAs that five council members signed. "It should be universal that we look at this," she said.

Decisions and stakeholder impacts: The council voted in two steps:
- Park's substitute motion, seconded by Gillmor, expanded the review to all city NDAs. It passed with one no vote.
- The amended motion, which folds the data center NDA concerns into staff's data center work, then passed unanimously.

Grogan cautioned about staff capacity: "we have over 150 priority initiatives."

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• Vásquez gravesite landmarked: The council unanimously, by those present, added Tiburcio Vásquez's Mission Cemetery grave to the Historic Resource Inventory. "Recognizing his gravesite does not require us to excuse or romanticize any actions," said Yvonne Inciarte, Historical and Landmarks Commission.
• Parking requests deferred: Park's requests on apartment-area and affordable housing parking were deferred to first-quarter 2027 housing talks, 6-1. His stadium towing compensation request was dropped.
• Stadium Authority report delayed: The quarterly financial report and the JustServe volunteerism item were continued to the second November meeting.
• Consent and artwork approved: The council approved the consent calendar unanimously and accepted "The Skyway," an artwork donated by the Santa Clara City Library Foundation and Friends.
• Izumo and Diwali honored: The council marked 40 years of sister-city ties with Izumo, Japan, and issued proclamations for Hindu American Awareness Month and Diwali.

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Looking ahead: Park asked that the police department's Flock surveillance report return publicly, citing the council's March 24 six-month direction. No action was taken. Grogan said the Dec. 8 meeting will mark the council changeover, with Silicon Valley Power rate increases and convention center finances also on the calendar.