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.
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 MattersKey Officials
The decision-makers on record.
Vice Mayor Kelly Cox
Vice Mayor
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
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
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.
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 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
Every claim 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
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Zoning posture, approval pathway, community risk, and comparable outcomes. Sourced and scored by close of day, not months.
