Back to Risk Index
Risk Index — Q1 2026OngoingWorsening

Santa Clara Data Center Market

City of Santa Clara, Santa Clara County, California

42/100

Moderate Risk

Last updated 2026-03-29

Trajectory evidence: Three consecutive Planning Commission denials in 2024-2025. Commissioners expressing cumulative impact fatigue. 96MW of completed DCs sitting empty awaiting power.

Composite Score42/100

Moderate Risk

Dimension Breakdown

Four dimensions that determine entitlement feasibility.

Regulatory Risk

14/30

CUP required in industrial zones. Documented supermajority requirement (4 of 5 affirmative votes) creates structural veto threshold. Updated zoning code (July 2025) includes 90-foot height allowance but Planning Commission increasingly hostile.

Infrastructure Readiness

6/25

Critical weakness. Silicon Valley Power (city-owned) is severely grid-constrained. Two completed DCs (Digital Realty 48MW, Stack Infrastructure 48MW) sitting empty since construction. SVP has 500MW of pending requests against ~840MW peak capacity. $450M upgrade scheduled for 2028.

Opposition Density

12/25

Diffuse opposition through Planning Commission friction rather than grassroots coalitions. No named activist group. Commissioners stated city is committing "too much land to data centers." Chair Saleme: DCs are "unto itself, its own entity. There is little it will add to the community."

Approval Timeline

10/20

Two-stage process: Planning Commission hearing (likely denial) followed by City Council appeal. GI Partners: filed pre-2024, approved August 2024. Each project takes 5-6 months minimum. DCs approved but cannot get power for years.

Key Findings

What the record shows.

GI Partners 72MW DC received 3-2 vote from Planning Commission (technical denial due to supermajority requirement). City Council approved on appeal.

Santa Clara News Online

Two completed data centers (Digital Realty 48MW, Stack Infrastructure 48MW) sitting empty awaiting SVP power delivery.

Santa Clara News Online

Planning Commission Chair Saleme: data centers are "unto itself, its own entity. There is little it will add to the community."

Silicon Valley Voice

SVP received requests for 500 additional MW against ~840MW peak capacity.

Local News Matters

Key Officials

The decision-makers on record.

Vice Mayor Kelly Cox

Vice Mayor

Neutral

Documented Record

Questioned SVP's power delivery capacity: "Have we overpromised and underdelivered?"

Documented position based on public record.

Planning Commissioner Priya Cherukuru

Planning Commissioner

Opposed

Documented Record

Stated the city is committing "too much land to data centers" and not enough for housing or mixed use.

Documented position based on public record.

Planning Commission Chair Lance Saleme

Planning Commission Chair

Opposed

Documented Record

Stated DCs are "unto itself, its own entity. There is little it will add to the community... it consumes, it grows, it uses resources."

Documented position based on public record.

Opposition Profile

Who is organizing.

2 signalsmedium infrastructure

Planning Commission members expressing cumulative impact fatigue

Residents voiced noise and truck traffic concerns at March 2025 hearing

Timeline

How it unfolded.

August 1, 2024

GI Partners DC approved by City Council after Planning Commission technical denial.

October 23, 2024

Prime Data Centers denied by Planning Commission 4-3.

March 1, 2025

CoreSite SV9 received 3-2 vote against (technical denial).

July 1, 2025

Updated zoning code went into effect with 90-foot DC height allowance.

Known Risks

What can go wrong.

Supermajority requirement creates structural veto at Planning Commission

SVP grid severely constrained — 96MW sitting empty

Three consecutive Planning Commission denials

DCs approved but cannot get power for years

Recommendation

Moderate Risk — Score 42/100

Moderate Risk. Entitlement pathway exists but requires budgeting for Planning Commission denial and Council appeal. Primary risk is infrastructure — SVP grid at capacity with $450M upgrade scheduled for 2028.

Get your site scored before the surprises start.

Zoning posture, approval pathway, community risk, and comparable outcomes. Sourced and scored by close of day, not months.

RealClear

Source-backed entitlement intelligence for development teams screening live sites before legal, consultant, utility, and political spend compounds. Zoning posture, approval pathways, community risk, and comparable outcomes — cited to the primary source, not a third-party summary.

California

© 2026 RealClear Systems, Inc. · Made in California