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OngoingWorseningRisk Index — Q1 2026

Santa Clara Data Center Market

City of Santa Clara, Santa Clara County, California

42/100

HIGH RISK

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

Last updated 2026-03-29

Santa Clara has a data center problem that money cannot solve: the grid is full. Two completed data centers — 96 MW combined — are sitting empty because Silicon Valley Power cannot deliver electricity. The Planning Commission has denied three consecutive projects. The chair said data centers are "unto itself, its own entity. There is little it will add to the community." A $450 million grid upgrade is scheduled for 2028. Until then, you can build a data center in Santa Clara. You just cannot turn it on.

Two completed data centers (Digital Realty 48 MW, Stack Infrastructure 48 MW) are sitting empty awaiting SVP power delivery. 96 MW of stranded investment.

SVP has 500 MW of pending requests against approximately 840 MW peak capacity. The city-owned utility is the bottleneck, not zoning.

Three consecutive Planning Commission denials (2024-2025). A supermajority requirement (4 of 5 votes) creates a structural veto threshold.

Planning Commission Chair Saleme: data centers "consume, grow, use resources." Commissioner Cherukuru: the city is committing "too much land to data centers."

The CUP pathway still works — every Planning Commission denial has been overridden by City Council on appeal. But budgeting for denial-plus-appeal is now a requirement.

Inside this score

How the 100 points break down.

Each dimension is scored out of its own weight, and the four add up to the score. A higher score is a clearer market-level path; it is not a likelihood of approval for a parcel.

  1. Regulatory Riskweight 30
    14 / 30
    What it reads, and where it stops

    Measures zoning classification, approval pathway type (by-right, CUP, rezoning), moratorium status, and regulatory trajectory. Higher scores indicate clearer regulatory paths.

    Reads the written route and the stated direction of a market's rules as of the edition date. It does not read a particular parcel's zoning, and a rule recorded here can change at the next meeting of the body.

  2. Infrastructure Readinessweight 25
    6 / 25
    What it reads, and where it stops

    Measures utility capacity, grid interconnection availability, water supply adequacy, and infrastructure investment commitments. Higher scores indicate better infrastructure readiness.

    Reads the utility, grid, water and investment record for the market. It does not confirm capacity at a given site, and delivery timelines for power and water are separate from entitlement risk.

  3. Opposition Densityweight 25
    12 / 25
    What it reads, and where it stops

    Measures organized opposition groups, petition scale, public hearing attendance, political consequences (elections, recalls), and legal challenges. Higher scores indicate less opposition.

    Reads organised opposition that shows on the public record: groups, petitions, hearings, elections and legal challenges. A quiet record is not evidence of support, and a loud one is not a count of votes.

  4. Approval Timelineweight 20
    10 / 20
    What it reads, and where it stops

    Measures historical approval durations, number of sequential approval steps, legal challenges affecting timeline, and demonstrated fast-track capabilities. Higher scores indicate faster approvals.

    Reads how long recorded approvals have taken and how many sequential steps they needed. Past duration is a record of what happened, not a schedule for the next application.

14 + 6 + 12 + 10 = 42 of 100 · Moderate Risk

Four dimensions that determine entitlement feasibility.

Regulatory Risk

30 pts

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.

Score: 14/30. CUP required with supermajority vote. Planning Commission is increasingly hostile. But City Council has overridden every denial on appeal — the pathway exists, it just has a speed bump.

Infrastructure Readiness

25 pts

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.

Score: 6/25. Critical weakness. SVP is severely grid-constrained: 96 MW sitting empty, 500 MW pending, $450M upgrade scheduled for 2028. This is the worst infrastructure score among markets where data centers are technically approvable.

Opposition Density

25 pts

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."

Score: 12/25. Diffuse opposition through Planning Commission friction, not grassroots coalitions. No named activist group. But commissioners are expressing cumulative impact fatigue.

Approval Timeline

20 pts

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.

Score: 10/20. Two-stage process: Planning Commission hearing (likely denial) then Council appeal. 5-6 months minimum per project. Approved data centers cannot get power for years.

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

Who is organizing.

2 source recordsmedium infrastructure

Planning Commission members expressing cumulative impact fatigue

Residents voiced noise and truck traffic concerns at March 2025 hearing

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.

Dates on the record

Dates on the record.

As of the 29 Mar 2026 edition

No date after the 29 Mar 2026 edition is on the record for City of Santa Clara.

Only dates that this market's own timeline gives. No outcome is named. The dated acts that have already happened are in the timeline above.

What could change.

Active risk factors documented in public record.

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

HIGH 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.

From the record

What the public record holds for City of Santa Clara.

Each case file below is a verified public record with its sources attached; each note is a dated research note. They sit beside this market's score; they do not change it.

Case files in City of Santa Clara

Case files elsewhere in California

Sector page: Data centers

Get your site briefed before the surprises start.

Zoning posture, approval pathway, community risk, and comparable outcomes. The cited site-memo queue targets a delivery window confirmed at acceptance of the completed property submission. Complex or thin-record sites can take longer.

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The site-memo queue targets a delivery window confirmed at acceptance of the completed property submission. Complex or thin-record sites can take longer.

About This Index

Published Q1 2026

RealClear gives real estate development teams cited entitlement research before they commit serious diligence spend. This index scores U.S. markets across four dimensions of data-center entitlement risk: regulatory complexity, infrastructure readiness, community opposition density, and approval timeline. It is market-level triage, not a parcel score. Submit a specific parcel and you get a reviewed, cited brief whose claims trace to primary sources.

Read the full methodology
20Markets Scored
15Index States
235+Source-Backed Claims

Ready to screen a property candidate? RealClear returns a reviewed, cited brief covering zoning posture, approval path, community posture, comparable outcomes, open questions, and next questions for counsel, civil, utility, or the local team. We confirm the delivery window when we accept your completed property submission. Complex or thin-record sites may require more research.

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