Santa Clara study session reviews data center growth, power limits, recycled-water use and city revenues

City officials, utility staff and industry representatives briefed the Santa Clara City Council and Planning Commission on the local footprint of data centers, telling the joint study session that the facilities are a substantial source of city revenue but are also constrained by electric-system capacity and raise ongoing questions about water use, noise and diesel backup generators.

City Manager Javon Grogan said data centers contribute “over $40,000,000” to the city budget and represent “about 13% of our general fund.” He and other staff stressed that the presentation was informational and not a proposal for new regulations.

The discussion brought technical briefings from the Data Center Coalition and several city departments. Dan D’Aureo, senior director of state policy for the Data Center Coalition, described data centers as “specialized facilities that store, process, and distribute digital information — think of it as the brain of the Internet,” and outlined industry trends that are driving demand nationwide. Silicon Valley Power (SVP) staff described rapid load growth driven by existing and proposed data centers and the utility’s ongoing infrastructure projects.

Why it matters: Santa Clara staff said revenues tied to data centers and SVP transfers underpin services used by residents, while simultaneous questions about land use, potable and recycled water consumption, aesthetic design, and diesel generator emissions have prompted calls from commissioners and the public for further study.

Most important points from staff presentations

- Fiscal impact: Economic development staff presented a city tally for the current fiscal year showing combined contributions from SVP transfers, property tax, and sales/use tax from data centers of about…