Santa Ana City Council members are slated to debate a potential ban on new data centers, also known as server farms, as part of an upcoming overhaul of the city’s zoning code. The comprehensive update to rules governing land use for open space, housing, commercial, and industrial buildings is expected to come before the Council next month.
The discussion follows a vote by a majority of planning commissioners late last month. The Planning Commission approved a comprehensive update to Santa Ana’s zoning code and directed city staff to incorporate an explicit prohibition on new data centers before presenting the code to the City Council for final approval.
Councilwoman Jessie Lopez previously sought to implement a temporary 45-day ban on new data centers to allow city officials time to study the issue. Lopez, who is running for State Assembly, highlighted concerns in her agenda request that data centers consume significant amounts of water for cooling, strain local electrical infrastructure, may cause pollution, and create fewer permanent jobs compared to other industrial developments relative to their resource use. She suggested a moratorium would provide time to assess whether a permanent prohibition, similar to approaches in Coachella and Monterey Park, or a tailored framework addressing water use, electrical impact, noise, and design, would best serve Santa Ana's interests.
However, her effort for a temporary ban did not advance, with some council members stating the issue would be addressed during the zoning code overhaul. Councilman Phil Bacerra, who is seeking re-election, described the proposed moratorium as unnecessary, citing that the city was already in the process of revamping its zoning code. At a recent meeting, Bacerra deemed Lopez’s request a "waste of time," noting that the issue would be addressed "in two weeks" as part of the broader zoning review. He expressed frustration, noting the proximity to the November election.
City staff indicate that Santa Ana currently hosts three relatively small data centers and has not received any new applications for such facilities. Ali Pezeshkpour, the City’s Planning and Building Director, specified that one existing center is county-owned, serving Orange County; another is utilized by Verizon Wireless on East Deer Avenue; and a third is located on East Dyer Road. Pezeshkpour confirmed that none of these facilities exceed 100,000 square feet.
The expansion of data centers has been spurred by the growth of artificial intelligence, yet concerns persist regarding their potential to increase utility costs for residents, impact the electrical grid, and strain local water supplies.
Councilman David Penaloza, who is campaigning against Lopez for State Assembly, has publicly stated that data centers should be banned. Penaloza voiced concerns at a recent meeting about the significant water usage and the stress these facilities place on the electrical grid. His campaign has received nearly $1.4 million in support from a committee funded by Google and Meta since April, according to the Secretary of State website.
Conversely, Councilwoman Thai Viet Phan opposed the temporary moratorium, arguing the city lacks a clear definition of what constitutes a data center. Phan explained that data centers are necessary for many businesses and office buildings that rely on offsite servers for faster data processing, adding that these facilities are essential for offices located within Ward One of the city. She cautioned against an outright ban without a thorough understanding of their local impact and operations.
Labor union leaders and members have also weighed in, advocating for regulation rather than a complete ban. Doug Mangione, political director of the International Brotherhood of Electrical Workers – Local 441, suggested that responsibly built data centers could benefit the city and its workers. He noted that state legislators are already working on rules and taxes for operators with high electrical usage. Mangione cautioned against both avoiding new developments and permitting unregulated construction, emphasizing that while new things should not be hidden from, they also should not be built carelessly.
The upcoming City Council debate will determine the final approach to data centers within Santa Ana’s updated zoning framework, potentially establishing conditional standards or an outright prohibition for future developments.
