Hayward Planning Commission approves STAC data center, accepts CEQA document and $2 million public‑benefits package

The Hayward City Planning Commission on May 22 approved a major site plan review and administrative use permit for STAC Infrastructure’s proposed three‑story data center at 26062 Eden Landing Road and certified the project’s Initial Study/Mitigated Negative Declaration prepared by the California Energy Commission.

The project would replace an approximately 11‑acre vacant light industrial office park and, as presented to the commission, includes a roughly three‑story data center building about 100 feet tall, an on‑site substation and switching station, a generator yard with 28 diesel emergency generators, a guard station and security fencing, screening for visible equipment, and related site and utility upgrades. Staff and the applicant said the site is zoned Industrial Park and the general plan designation is Industrial Corridor.

Staff recommended approval, concluding the project complies with applicable city codes and industrial design guidelines and that mitigation measures contained in the CEQA document reduce identified impacts below significance thresholds. The California Energy Commission served as lead agency for the IS/MND because the project qualifies as a small thermal power plant; the final IS/MND was certified by the CEC on May 8, 2025. If approved by the commission, the planning action required adoption of the IS/MND that the CEC prepared as part of the project record.

Why it matters: city staff and the applicant described the project as bringing construction jobs, long‑term operations jobs, and major off‑site infrastructure investments to Hayward. In return the applicant proposed a one‑time public benefits package the applicant increased during review from earlier figures to $2,000,000 to address local priorities, and pledged union construction labor for the project.

Project elements and employment: Senior Planner Elizabeth Blanton told the commission the site plan anticipates demolishing nine existing single‑story buildings to build the new facility. The applicant told the commission the project would create roughly 380 union construction jobs, an estimated 41 on‑site operations jobs and about 200 indirect jobs in the local economy during operations. Developer testimony and the staff report also said the project would include electrical and water upgrades to serve the site and nearby properties; during questioning the applicant estimated those infrastructure upgrades at about $70,000,000.

Parking, height and public benefits: Because data centers have low on‑site staffing, the applicant asked for a parking reduction; staff recommended approval of 68 parking spaces to serve the facility based on an estimated maximum staffing level of 33 employees and up to 12 visitors per day. The applicant requested a height exception to build up to 100 feet where the Industrial Park zoning district sets a 75‑foot maximum; both staff and the applicant described the request as supported by a public benefits package the applicant increased to $2,000,000 in response to stakeholder feedback. The commission reviewed the package breakdown the applicant provided: $500,000 to HASPA, $300,000 each to the city’s Gateway Marker project and to a small‑business grant program, $200,000 each to La Vista Park, Hayward Unified School District, and a CIP solar project at the city’s water resource recovery facility, $150,000 for nearby bike and pedestrian projects, $100,000 for a CIP STACK community center project, and $50,000 for new signage at the adjacent Eden Landing shopping center. Staff noted those contribution figures were distributed in revised conditions on the day of the meeting.

Environmental and technical mitigations: The project’s IS/MND and Mitigation Monitoring and Reporting Program assign measures for air quality, greenhouse gases, cultural resources, hazardous materials storage and other topics. Consultant testimony described the generator testing regimen: monthly no‑load tests of roughly 15 minutes per generator, and occasional longer maintenance runs, with generators enclosed and screened to reduce noise. The project team and a consultant told the commission that modeled noise and emissions from testing and emergency use would meet Bay Area Air Quality Management District and city thresholds. The project would use renewable fuel and a procurement program to achieve a 100% renewable energy option for operations, either via the city’s local renewable program (identified in testimony as “AVA”) or through PG&E’s renewable options; the applicant said it uses offsets and renewable energy procurement within its corporate program to reach an operational renewable mix.

Public comment and stakeholder input: Public comments were largely supportive and focused on workforce and union job opportunities; several construction‑trade speakers urged approval and said the project would provide local apprenticeships and family‑supporting wages. City and regional stakeholders, including the HASPA board, had sought a larger public benefits commitment; staff and the applicant described a multi‑year outreach process and multiple committee reviews leading to the $2,000,000 package. Nearby restaurant owners spoke during public comment about potential construction‑period impacts to adjacent businesses and asked what additional assistance would be available beyond a $50,000 signage contribution; the applicant and staff described planned logistics measures to minimize disruptions and said staff will continue to coordinate with local businesses.

Commission action: Commissioner Stevens moved to approve the staff recommendation; the motion passed on a recorded vote of 6‑0 with Commissioner Franco Clausen absent. The commission’s action included approving the major site plan review and administrative use permit, accepting the CEC‑prepared IS/MND, and adopting conditions of approval and the mitigation monitoring and reporting program attached to the staff report.

What the approval does and does not do: The commission’s approval is a land‑use entitlement that allows the project to proceed toward building permit submittal subject to the adopted conditions. Additional technical permits (including a separate fire permit and hazardous materials permits tied to on‑site diesel storage and generator enclosures) were discussed as required steps prior to installation and operation. The commission’s vote does not remove other permitting, outreach or review steps such as utility interconnection, building permits, and the fire department review and sign‑off required for the on‑site fuel and generator systems.

Next steps: With the planning commission approval and the CEC‑certified IS/MND on the record, the applicant said it would continue building‑permit submittal activities and expects to submit building permits in the months following the approval. Staff will track implementation of mitigation measures through the Mitigation Monitoring and Reporting Program and the city’s conditions of approval.