Across the country, data centers have become flashpoints in debates over energy use, water consumption, tax incentives, and local control. Hayward is no exception.

The Stack Infrastructure data center has recently become one of the most controversial development projects in the city, sparking heated social media debate, criticism of local officials, and calls for greater oversight of how major projects are approved. Yet by the time many residents became aware of the project, construction had already begun.

Over the past two years, the Hayward Herald has tracked the data center as it moved through the city's approval process. The project offers a revealing look at how local government works in Hayward and raises questions about zoning, business classifications, public benefits, and community oversight.

At the center of the controversy is a simple question. How did a 300,000-square-foot facility, standing 100 feet tall, move forward without City Council oversight or approval?

The Roots of the Approval Process

The Hayward Herald first reported on the Stack Infrastructure data center in June 2024, when the project was still under review by the Planning Division and had not yet reached the Planning Commission, an appointed group with limited decision-making power on items related to planning and zoning.

At that time, city staff sought feedback from City Council on a proposed Public Benefits Package. The developer offered $1.1 million for local projects in exchange for permission to exceed the standard 75-foot height limit. The facility would also include 28 backup generators, an on-site power substation, and a switching station.

Council members offered little feedback during the discussion. When Councilmember Ray Bonilla questioned whether the package was equitable, city staff responded that evaluating the fairness of the proposal fell under the responsibility of the Council Economic Development Committee.

The Planning Commission's Pivot

By November 2024, the project had advanced through key stages of Hayward's planning process and the proposed Public Benefits Package had increased to $1.3 million. During a Planning Commission meeting, Planning Division staff recommended consolidating public benefits, adding solar panels at the Water Resource Recovery Facility, a bike path serving Eden Gateway, and giving the Hayward Area Shoreline Planning Agency authority over certain funds.

Commissioners asked about the size of the benefits package, the environmental impacts of the backup generators, local hiring, tax revenue, electrical grid impacts, EV parking, water storage, and backup power. Staff confirmed there was no established formula for determining the size of a Public Benefits Package.

Commissioner Karla Goodbody questioned whether the commission should be responsible for shaping the package at all. "This body or the City Council or perhaps maybe an ad hoc committee could really benefit from carving out the Public Benefits Package and unpacking it to realize efficiencies."

Commissioner Robert Stevens asked whether a benefits package was necessary in the first place. "I don't even understand why there's any money spent for public benefits," he said arguing the project would provide significant economic benefits.

Escalation and Approval

In May 2025, the Hayward Herald continued its coverage of the Stack Infrastructure project as the Planning Commissioners pressed the developer on several aspects of the proposal. Commissioner Ron Meyers questioned the facility's energy strategy, asking whether Stack Infrastructure would procure renewable energy directly or rely on renewable energy credits. Company representatives acknowledged they would depend on credits and lacked a contingency plan should those credits lose validity.

Commissioner Robert Stevens also challenged the project's environmental claims remarking, "It's laughable to think that this is going to be supported by any type of renewable energy." Stevens also argued that requiring a Public Benefits Package as a condition of project approval set a concerning precedent and that the proposed package was inflated given the project's broader regional benefits.

The project drew strong support from organized labor, which highlighted commitments to 100% union labor and an estimated 380 temporary construction jobs. The facility is expected to create 41 permanent on-site positions.

Following the hearing, the Planning Commission approved Stack Infrastructure's request for an additional eight feet of building height, in exchange for a $2 million Public Benefits Package, a $500,000 increase from the previous proposal. The agreement also included replacing a water main, a commitment presented as a public benefit despite the facility's substantial water demands.

Despite repeatedly criticizing the benefits package during the discussion, Stevens ultimately made the motion to approve the height increase. The Planning Commission voted unanimously in favor of the project.

The Classification Loophole

By January 2026, attention shifted to the city's zoning code. During a Planning Commission discussion, members agreed that existing regulations were too restrictive. Commissioner Robert Stevens argued that limiting data centers to General Industrial districts constrained the city's ability to adapt to future economic trends.

The discussion also shed light on how the Stack Infrastructure project moved through the approval process. Although data centers were permitted only in General Industrial districts, they were categorized as office uses under the city's code. That allowed them to move through the standard planning process without input from anyone but city staff.

The project came before the Planning Commission only because the developer requested an especially tall building. Once that request was made, the commission, not the City Council, became the body responsible for approving the project and negotiating the final Public Benefits Package.

By the time broader concerns reached the City Council, key approvals had already been granted.

City Council's Wake-Up Call

In January 2026, the City Council publicly confronted the implications of the Planning Commission's earlier approvals. Council Members George Syrop and Angela Andrews raised concerns about the project's demand on the city's power and water infrastructure. "One-fifth of all homes in Hayward. That amount of electricity is going to be used by this singular data center," Syrop said, questioning whether the city had adequately evaluated the value of the Public Benefits Package compared with agreements negotiated in cities like San Jose.

Mayor Mark Salinas pointed to an imbalance in the city's review process. "We put this 15,000-square-foot [cannabis] retailer through the wringer up here," he said, contrasting the scrutiny applied to smaller projects with the approval of a large-scale data center. Several council members also questioned whether projects of this magnitude should continue to bypass direct Council review. The discussion marked a shift from debating the merits of a single project to reconsidering how future data centers should be approved. 

Other council members urged caution against portraying data centers as inherently negative while agreeing that projects of this scale should receive greater public oversight. By the end, multiple council members expressed support for changing the approval process so that future data center projects would come before the City Council for final approval.

A Lesson in Local Governance

How did we get here? 

It was not a backroom deal or a secret vote, but a process that few residents were following and even fewer understood.

This underscores how understanding local government means more than following votes cast at City Council meetings. It means understanding the various commissions, officials, and bodies empowered to make decisions, how businesses are classified, and the zoning and planning procedures that often shape a project's path long before it attracts public attention.

Understanding how local government works is also the first step toward influencing it. According to the Hayward City Charter, Planning Commission members are subject to removal by a motion of the City Council adopted by at least four affirmative votes.

While commissioners are not elected officials, residents can advocate for changes in commission membership and participation. The City is currently accepting Planning Commission applications through July 31, 2026, with up to three seats potentially available.

That is why local journalism matters. For the past two years, the Hayward Herald has followed this project from its earliest reviews through the public debate that continues today. We remain the only nonprofit newsroom in Hayward covering City Hall meetings twice each week.

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