Santa Clara Data Center Market
City of Santa Clara, Santa Clara County, California
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.
- Regulatory Riskweight 3014 / 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.
- Infrastructure Readinessweight 256 / 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.
- Opposition Densityweight 2512 / 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.
- Approval Timelineweight 2010 / 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
Dimension Breakdown
Four dimensions that determine entitlement feasibility.
Regulatory Risk
30 pts
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
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
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
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.
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 OnlineTwo completed data centers (Digital Realty 48MW, Stack Infrastructure 48MW) sitting empty awaiting SVP power delivery.
Santa Clara News OnlinePlanning Commission Chair Saleme: data centers are "unto itself, its own entity. There is little it will add to the community."
Silicon Valley VoiceSVP received requests for 500 additional MW against ~840MW peak capacity.
Local News MattersOpposition Profile
Who is organizing.
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.
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.
Known Risks
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
Recommendation
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.
Sources
Claims cited.
Silicon Valley Voice: Planning Commission Gives Initial Thoughts on Zoning Code Update
secondarySanta Clara News Online: City Council Approves Data Center on Bowers Avenue
secondaryLocal News Matters: As data centers multiply
secondarySilicon Valley Voice: Council Approves DC In Spite of Planning Commission Objection
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
- Council reversed the 1231 Comstock data-center denialData centers · Santa Clara, California
Case files elsewhere in California
- Cardiff conversion appeal denied unanimouslyRetail & restaurants · Encinitas, California
- Marinwood apartments reached building-permit approvalHousing · Marin County, California
- Vallco/The Rise kept a ministerial approval through later modificationsHousing · Cupertino, California
- San José granted the Westgate West Costco CUPRetail & restaurants · San José, California
- Beverly Hills lists 8844 Burton Way as approved after appealHousing · Beverly Hills, California
- Fresno reapproved the Riverside Drive Costco after a partial CEQA remandRetail & restaurants · Fresno, California
- Santa Monica settled 13 builder’s-remedy applicationsHousing · Santa Monica, California
- Los Angeles approved Winnetka affordable housing after ED1 litigationHousing · Los Angeles, California
- Danville denied appeal and left senior-care approval in placeHousing · Danville, California
- San José approved Tamien affordable-housing financingHousing · San José, California
- 555 Fulton formula-retail grocery approved with traffic conditionsRetail & restaurants · San Francisco, California
- Palo Alto approved the 800 San Antonio mixed-use planHousing · Palo Alto, California
- Goleta approved a revised Shelby housing plan after litigationHousing · Goleta, California
- Redlands reported approval of 301 Tennessee warehouseIndustrial · Redlands, California
- Santa Maria approved the Preisker drive-through with conditionsRetail & restaurants · Santa Maria, California
Notes about California
- The format is the fight: self-storage pauses, drive-thru bans, and the moratorium habitJurisdiction Data · 19 Jun 2026
- Industrial vacancy just hit a cycle high. Building a warehouse got harder anyway.Jurisdiction Data · 17 Jun 2026
- The drive-thru is the entitlement: how a Starbucks dies next to a schoolJurisdiction Data · 2 May 2026
Sector page: Data centers
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