A significant discussion at the Santa Clara Planning Commission meeting on June 11, 2025, centered around the potential for new data centers in the city. The proposal under consideration aims to replace much of the existing office and retail space with light industrial areas that could host data centers. However, officials clarified that there is currently no specific development proposal for any data center before the commission.

Zanna, a key speaker at the meeting, emphasized that while the option to include data centers is being added to the master community plan, there is no mandate to construct them. The city could still opt for a mix of office spaces or other industrial uses, such as warehouses. This flexibility means that while data centers are a possibility, they are not guaranteed.

Concerns were raised about the city's capacity to power potential data centers. Officials noted that the city currently lacks the infrastructure to support large data centers, which typically require between 50 to 99 megawatts of power. It could take at least eight to nine years before any new data center could secure the necessary power supply. In contrast, smaller ancillary data centers, limited to 9 megawatts, may have a better chance of being powered sooner.

The discussion also touched on the regulatory landscape surrounding data centers. The California Energy Commission (CEC) oversees larger power plants, requiring a lengthy approval process. However, smaller projects can qualify for a Small Power Plant Exemption (SPPE), allowing them to bypass some of the more extensive state licensing requirements.

As the city navigates these complex issues, the future of data centers in Santa Clara remains uncertain, with officials committed to ensuring any developments align with the community's needs and infrastructure capabilities. The Planning Commission will continue to review proposals and community feedback as they shape the city’s industrial landscape.