San Jose data center fights grow; Patterson extends freeze to July 2027
Reuters reports Silicon Valley pushback to AI data centers. In the Valley, Patterson extends a moratorium and MID weighs how to shield Modesto ratepayers.
San Jose data center fights grow; Patterson extends freeze to July 2027
Key Takeaways
- Reuters reports San Jose residents and groups organizing against multiple proposed AI data centers.
- Patterson extended its temporary moratorium on new data centers to July 15, 2027.
- Modesto Irrigation District discussed safeguards after inquiries for 25–400 MW large-load projects.
- Some Modesto council members favor a pause or ban while staff study rules and costs.
- California signed a data center oversight bill package in late September.
What Patterson did
In August, the Patterson City Council voted to stretch a pause on new data center permits until July 15, 2027. City staff said they need the time to study power, water and neighborhood impacts before any applications move. The council first adopted a 45‑day urgency ordinance in July, then extended it by ten months and fifteen days.
The question in Patterson is simple: do the benefits beat the utility and land‑use costs the city would shoulder. A plastic bottle of hand sanitizer sat by the microphone as members took their votes.
What Reuters found in San Jose
The fight in Santa Clara County is louder. Reuters reported on Sept. 17 that San Jose residents and environmental groups have organized against a wave of proposed data centers that city officials have courted as AI infrastructure. The same week, industry advocates defended growth while legislators pushed tighter rules. Four days later, on Sept. 21, the governor signed a package of bills aimed at electricity pricing, water reporting and local oversight for data center projects.
For a Central Valley reader, the takeaway lands close to home. Companies that need cheaper land and large power blocks will look inland, and cities here control the zoning meetings where those decisions get made.
What this means for Modesto and MID
Modesto hasn’t approved a project. It has a debate. The Modesto Irrigation District, which would power any large site in the city or its service territory, briefed its board last month on how to keep existing customers whole if a developer comes calling. Staff told directors the district has logged inquiries for large‑load service since 2018, ranging from 25 to 400 megawatts, with potential data centers in the mix. No details yet.
Directors talked through collateral requirements, cost‑recovery studies and long‑term contracts that would make a developer, not local ratepayers, pay for upgrades if a project moves forward. MID’s general manager said staff can comment during city environmental review, but land use decisions sit with Modesto or Stanislaus County. That split matters, because council members in Modesto have publicly floated a pause or even a ban while staff write rules.
Separately, a developer has scouted the old FMC site on Graphics Drive, according to public discussions. City code changes would be required before any formal application.
The bottom line for Valley readers
If San Jose’s opposition slows projects there, more pitches will hunt for power and permits east of the Altamont. Utilities will focus on who pays for new wires and substations. Councils will face meetings that run long.
"We’ve got to put a safeguard in place," MID Director John Boer said.
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