San Jose Council pushes for vibrant downtown data centers tied to housing development

The San Jose City Council convened on April 8, 2025, to discuss significant developments in downtown San Jose, particularly focusing on the proposed construction of data centers and their implications for the community. The meeting highlighted the need for careful planning to ensure that these projects contribute positively to the urban environment.

The council began by addressing the potential benefits of integrating data centers into the downtown area. Mayor emphasized that while data centers typically do not generate high foot traffic, they could provide essential funding for public services such as police, fire, and park maintenance through increased tax revenue. The council members expressed a consensus that the benefits of these projects could outweigh concerns about their impact on downtown vibrancy.

A multi-signature memo was introduced, co-authored by several council members, which outlined key conditions for moving forward with the data center projects. The memo emphasized the importance of ensuring that residential buildings are constructed alongside the data centers to promote a lively urban atmosphere. The council recognized that data centers should not stand alone but rather be part of a broader strategy to enhance downtown living and activity.

Additionally, the council discussed the need for creative activation of the ground floor of the data centers. Members expressed concerns about the potential for these facilities to create "dead zones" in the city. They urged the developers to incorporate public art and other engaging elements to ensure that the spaces are inviting and contribute to the overall vibrancy of downtown.

Vice Mayor Foley reiterated the importance of balancing the need for data centers with the goal of fostering a lively urban environment. She highlighted the potential for a portion of the revenue generated by the data centers to support arts and cultural initiatives, further enhancing the community's appeal.

The meeting concluded with a commitment to explore innovative solutions for activating the ground floor spaces and ensuring that the data centers align with the city's vision for a vibrant downtown. The council plans to revisit the proposals in future meetings, aiming to strike a balance between rapid development and community accountability.