Hayward Pauses Data Center Development

On October 20th, the Hayward City Council unanimously voted to approve a 45 day pause on data center development. The city will now have 45 days to research the concerns brought by members of the community during the last several months. If needed, the City Council can extend the pause for another 10 months and 15 days, and then again for another year.

The pause came as a result of intense community pressure over the Stack data center, currently under construction on Eden Landing Road. Over 20 community members and a number of organizations spoke in favor of the moratorium, citing environmental concerns, impacts to local businesses, and the danger to future generations of Hayward residents. Council members promised to work with the community to address their concerns, with many being open to extending the pause as long as needed.

Pausing Development To Buy Time

The moratorium, or pause, on data center development came after dozens of community members turned out for an August 11th community meeting with Mayor Mark Salinas. On August 12th, Mayor Salinas and Council members George Syrop and Angela Andrews issued a referral to develop options to limit or ban data centers while researching the impacts of such development on the city. On September 15th, over 100 community members showed up to support a pause or outright ban on data center development, with Council agreeing to implement a moratorium.

According to the staff report, during the pause, the city will research: cumulative impacts of multiple data centers, impacts to emergency response, and the economic and land use impacts of data centers. Though the initial pause will only last for 45 days, the Council already has a meeting tentatively scheduled for December 1st to extend the pause until October of 2027, with the option of extending it again until October 2028.

During the pause, any prospective developers can submit an application, but the city will not be allowed to approve it. According to Development Services Director Sara Buizer, there have been two inquiries from developers recently, but no actual applications.

"Detriment To Our Community"

Over 20 community members spoke during public comment, the vast majority in support of a pause, if not an outright ban, on data center development. Concerns focused, in large part, on environmental concerns. Marissa, a member of the Xerces Society, said that the noise from data centers can cause issues for bees and monarch butterflies. Others shared concerns about water use and pollution, especially from the backup diesel generators which are needed to maintain functionality during a loss of power.

Many residents also pointed out that data centers were generally harmful to the community because of how much they took and how little they gave back. Michelle, a resident who lives around 1.5 miles away from the Stack site, said, "After it's built, basically they're not going to be offering a lot to us." Sheila, who supported a ban, said, "Hyperscale data centers are not the future we want for our city. Data centers are not a sound long-term solution."

While many may be able to move away from undesired development, that's not always possible for everyone. Community member Catherine worried how data center development could impact those who aren't able to do that. "The Hayward that we're trying to retain and building needs to be one that cares for those that can't leave," she said. One member of the International Brotherhood of Electrical Workers (IBEW), Kevin, said that a healthy community was more important to him than the money gained from development. "Even if I should gain, I'm gain more from a healthy community," he said.

Working With The Community, Not Against It

The City Council took time to thank the attendees for their passion, information, and advocacy. Mayor Mark Salinas recognized why the moratorium was happening. "This emanated from a call from the community," he said. He said that the pause would give the city time to do research so they can move in a smart direction. "I want us to be very thoughtful," he said, "on how we proceed moving into the future... I'd like to err on thoroughness."

Mayor Salinas also agreed with one speakers who had pointed out that local governments were on the front lines of the conversation around data center development. He said that there had been little action on the Federal level, and perhaps not enough at the State level. "At the end of the day, it's local governments," he said, "we're the ones that are the front lines to this."

Other city council members continued to support what they had previously called "thoughtful development" with regards to data centers. Councilmember Ray Bonilla wanted to ensure that "future development in Hayward is responsible and best serves the interests of our community." He, and Councilmember Francisco Zermeño, supported oversight of existing data centers.

Councilmember Julie Roche said that it was important to take time to make good decisions, not those based on "fear-mongering culture." She defended the protections given by the California Environmental Quality Act (CEQA) and worried about going too far and stifling innovation. "We want to be able to welcome industry here," she said. "Hayward still wants to be part of innovation."

Councilmembers Angela Andrews and George Syrop both listed things they wanted staff to consider investigating during the pause. Councilmember Syrop called for barring public and appointed officials from signing non-disclosure agreements (NDAs) related to development, and a more defined community benefits process. "Not just for data centers," he said, "but for other development." Councilmember Andrews wanted to look at ratepayer protections, utility rate increases, mitigating water use, and monitoring noise. "Let's look at everything that the community has brought forward," she said.

Councilmember Dan Goldstein framed the meeting as a way for the City Council to work with the community. "Working together, we can make great things happen in Hayward," he said. "This is an example of that."

The 45 day pause on data center development was approved unanimously. The pause will likely be extended during the December 1st meeting.