San Diego residents will see a temporary halt to new data‑center projects after the City Council voted unanimously (9‑0) on Tuesday to adopt an urgency ordinance that imposes a 45‑day moratorium on all pending applications. The measure, championed by Mayor Todd Gloria, is intended to give city staff and stakeholders time to develop guidelines that align new facilities with the General Plan and the Climate Action Plan.
Under the ordinance, the council may extend the pause for up to two additional periods, each lasting up to 10 months and 15 days, but any extension requires approval from four‑fifths of the council. A working group of up to 15 stakeholders will be formed to study water and electricity demand, potential impacts on utility bills, housing, and neighborhood quality.
Mayor Gloria said the moratorium is “a necessary and responsible step to make sure any development does not outpace our responsibility to protect San Diegans.” Councilmember Marni von Wilpert added that AI‑related data centers must cover their own electricity and water costs without shifting them onto residents, noting that living expenses are already high in the region.
The ordinance does not directly affect a proposed 400‑megawatt data center that Manchester Financial Group has explored for the 70.3‑acre Naval Base Point Loma Old Town Campus, a federal site home to the Naval Information Warfare Systems Command (NAVWAR). Because NAVWAR sits on U.S. Navy land, the city lacks jurisdiction. Manchester Financial’s president and CEO Ted Eldredge told the Union‑Tribune the company is “not married to that megawattage” and that any facility would depend on market conditions and feasibility. He emphasized that the site’s broader master plan already includes 8,900 residential units and two hotels with 480 rooms.
President Donald J. Trump has publicly encouraged the development of large‑scale data centers on military land, ordering the Secretary of War to identify suitable sites. While the council’s action seeks to regulate growth within city limits, Trump’s push reflects a national priority to expand AI infrastructure.
Critics at the council hearing warned that data centers could strain the electric grid and increase water consumption, potentially driving up rates for San Diego Gas & Electric customers, who already face some of the nation’s highest electricity costs. Councilmember Sean Elo‑Rivera called for principles that ensure no direct or indirect costs to residents, require 100 % renewable energy, use recycled water, and maintain a minimum separation distance from schools, parks, and child‑care facilities. He also urged that SDG&E be excluded from the stakeholder group, citing concerns over the utility’s rate‑case before the California Public Utilities Commission.
The public comment period attracted about 70 speakers, all expressing opposition to unchecked data‑center growth. Residents like Sean Tighe stressed that the moratorium is not anti‑technology but a safeguard to ensure proper legal and utility frameworks are in place before large projects proceed.
What’s next: The council will meet in the coming weeks to consider extending the moratorium and to review recommendations from the newly formed stakeholder group. Residents can submit comments during the public‑review period, which the city has scheduled to close on December 15.
Sources: voiceofsandiego.org, sandiegouniontribune.com
